Intertek has rejected an unsolicited buyout proposal from Swedish private equity firm EQT, which valued the UK-listed testing and certification company at around £7.9bn ($10.74bn), saying the offer materially undervalued the business, according to a report by Reuters.
The bid priced Intertek at 51.5 pounds per share, a 36.6% premium to its closing price on 9 April, the day before EQT’s approach became public. Shares in the company, which provides quality, safety and sustainability testing services across global supply chains, rose sharply following the news.
EQT has indicated it is reviewing its options after the rejection, while Intertek is also pursuing a strategic review that includes exploring a potential separation of its two business divisions to unlock value.
Analysts suggested the approach could encourage further interest from both financial and strategic buyers, with expectations that additional bidders may emerge. The move comes amid increased private equity interest in UK-listed industrial and services companies, supported by relatively subdued valuations.
Testing and certification peers also gained on the news, reflecting broader sector interest, as demand for compliance, sustainability and quality assurance services continues to grow.
Intertek recently reported 5.4% like-for-like revenue growth in the first quarter and reaffirmed its outlook for mid-single-digit growth for the year.
