Intertek Group Plc is preparing to support a £9.4bn ($12.7bn) acquisition proposal from Swedish private equity firm EQT AB, following a series of previously rejected bids, according to a report by Bloomberg citing a statement from the UK-listed company.
The product testing and assurance provider said it is now minded to recommend EQT’s latest offer, which comes after three earlier proposals were turned down on valuation and execution risk concerns. The shift follows engagement from shareholders urging the board to enter discussions with the buyout firm.
Intertek shares rose sharply in early trading, reflecting improved investor sentiment after the company also confirmed it has paused its ongoing strategic review process.
If completed, the transaction would rank among the largest UK private equity deals on record, underscoring continued sponsor appetite for high-quality industrial and services assets in the London market.
The latest proposal values Intertek at £60 per share in cash, alongside a potential annual dividend of £1.10 per share. Combined, the offer represents a substantial premium to the company’s share price prior to EQT’s initial approach in April.
EQT has been granted access to confirmatory due diligence as it assesses whether to proceed with a firm offer. The Swedish buyout group has indicated this is its final proposal, setting a deadline of 11 June for a formal decision.
Intertek’s board said it believes the financial terms now on the table are sufficient to warrant a recommendation to shareholders, although it emphasised that no binding offer has yet been made and there is no certainty that a transaction will ultimately proceed.
The company had launched a strategic review shortly after receiving EQT’s initial approach earlier this year, a move widely interpreted as a defensive response to private equity interest.
Under current terms, EQT’s bid reflects an estimated premium of around 40% to Intertek’s share price prior to the initial approach being disclosed.
The development comes amid a broader uptick in European private equity activity targeting listed industrial and testing services businesses, where stable cash flows and global exposure continue to attract sponsor interest.
EQT reportedly did not immediately respond to requests for comment.
