Britain for sale: Intertek agrees £10.7bn takeover by Swedish firm EQT
Intertek has agreed to be taken over by Sweden’s EQT in a £10.7billion deal, becoming the latest London-listed heavyweight to head for the exit.
This morning, the two firms confirmed a £60 a share deal, valuing Intertek at £9.3billion, with an implied value of approximately £10.7billion including debt.
It marks an end to the months-long saga in which the private equity firm made four offers for Intertek.
The FTSE 100 testing firm had rejected EQT’s previous bids worth £51.50, £54 and £58 a share on valuation grounds, but last month said it was ‘minded to recommend’ its fourth offer at £60 a share following investor pressure to strike a deal.
The cash component of the recommended offer at £60 a share is a 40 per cent premium to Intertek’s closing price the day before EQT’s initial offer was made public.
Alongside £60 per share in cash, Intertek shareholders will still receive their final dividend for 2025, bringing the total consideration to £61.077 per share.
Under seige: A host of London-listed firms have been approached by foreign bidders
André Lacroix, chief executive of Intertek, said: ‘This offer represents an attractive opportunity for Intertek shareholders by delivering cash certainty today, and we are confident that Intertek will continue to thrive in the industry’.
Abu Dhabi Investment Authority and wealth fund Mubadala will become minority shareholders following the deal, with stakes of 16 per cent and 8 per cent respectively.
The deal represents Britain’s third-largest private equity takeover, behind the acquisition of airport operator BAA in 2006 and pharmacy chain Alliance Boots in 2007, according to LSEG data.
Intertek now becomes the latest British firm to fall into foreign hands, amid a takeover frenzy that has seen predators scouring the London stock market for firms they can snap up cheaply.
William Hill owner Evoke recently agreed to a takeover by Greece-based Bally’s Intralot, while energy firm DCC is the latest FTSE 100 firm to be circled by overseas predators. It recently said it was ‘minded’ to back a £5.7billion offer from private equity firm KKR and Energy Capital Partners.
Earlier this year, City behemoth Schroders backed a £9.9billion takeover by US rival Nuveen, while Lloyd’s of London underwriter Beazley agreed to be bought by Zurich Insurance in a £8.1billion deal.
Shares in Intertek rose 1.6 per cent to £58.12, still trading below the offer price.
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