SGS-Bureau Veritas merger talks end in no agreement

(Sharecast News) - European safety-testing giants SGS and Bureau Veritas have announced that discussions to merge the companies have ended without a deal being struck. "Today, Bureau Veritas announces that these discussions have stopped and did not result in an agreement despite a strong belief in the value of consolidation in the Testing, Inspection and Certification sector," the French company said in a statement.

Bureau Veritas had said in a statement on 15 January that it was in talks with Switzerland's SGS regarding a "potential business combination" following media speculation.

Using market capitalisation figures as of Friday's close, the tie-up would have created a company valued at just under €30bn, with annual revenues of nearly €13bn.

The companies' closest competitor is thought to be British product-testing and certification firm Intertek, valued at £8bn.

SGS's stock, which had been weaker since the initial announcement about merger talks, were up 3.5% at CHF88.02 in Zurich on Monday. Bureau Veritas, which had put in solid gains over January so far, dropped 4.2% to €28.60 in Paris.

Intertek, meanwhile, was trading 1.8% lower at 4,954p in London.