Intertek's board has signaled its intent to recommend a $10.6 billion takeover offer from Swedish private equity firm EQT. This proposal, valuing Intertek at $60 per share, is the fourth made by EQT and was described as "final." The initial offer from EQT was made on April 9, and the deal represents a premium of up to 62% to Intertek's share price at that time, when including dividends. The board had previously rejected bids of $51.50, $54.00, and $58.00 per share, stating they "fundamentally undervalued" the company.
The turnaround in the board's stance comes after mounting pressure from activist shareholders. Investors such as Palliser Capital, PrimeStone Capital, Harris Associates, and Lost Coast Collective (which owns 1.2% of Intertek) urged the board to engage with EQT. Matt Peltz, of Lost Coast Collective, specifically noted that the market was "skeptical" of Intertek's management's ability to improve the firm's standing.
Intertek had previously initiated a strategic review on April 14, aiming to potentially sell or demerge its energy and infrastructure division, which was seen as a defense against the takeover. This review, which was expected to conclude by mid-2027 and could have yielded a valuation as high as $72.70 per share if testing divisions re-listed in the US, has now been halted. Intertek has granted EQT access to confirmatory due diligence, and the deadline for EQT to formalize its offer has been extended from May 14 to June 11 by the UK Takeover Panel.
This potential acquisition, valuing Intertek's equity at over $9.2 billion (or $10.6 billion including debt), adds to a trend of large takeovers targeting UK-listed companies this year, following deals for insurer Beazley and fund manager Schroders. The proposal's value, including the dividend of $1.077 per share, brings the total valuation to $9.40 billion without debt. Shares in Intertek rose by 7% to 5,705.00 pence after the announcement, bringing its market capitalization to $8.77 billion.
