The £10.7 billion acquisition of Intertek by EQT marks a significant shift in the ownership structure of the British quality assurance services provider, with nearly 1,800 employees set to become part of the Swedish private equity firm's global portfolio. This deal comes on the heels of a recent surge in takeover activity across the London Stock Exchange, with international investors and private equity groups capitalising on attractive valuations offered by UK-listed companies.
According to data from Thomson Reuters Financial & Risk, 14% of FTSE 100 constituents have changed hands since the start of 2022, resulting in a £130 billion net outflow from domestic ownership. Analysts point to the London Stock Exchange's relatively low valuations as a key driver for this trend, making it increasingly attractive for international investors seeking undervalued companies.
Intertek's acquisition by EQT marks a strategic move into the professional services sector, with the Swedish firm eyeing expansion opportunities in testing, inspection, and certification services. The deal is expected to be finalised following regulatory approvals and shareholder votes, with EQT offering Intertek shareholders a significant premium of 12.5% above the company's closing price on June 21.
As the trend of British companies falling into foreign hands continues to gain momentum, economists and policymakers are left grappling with the long-term implications for the UK's industrial base and national economic sovereignty. While some argue that international investment brings capital and expertise, others express concerns about the potential erosion of domestic control and strategic direction.
The acquisition adds to a growing list of high-profile takeovers in the UK, including the recent £4 billion deal involving Morrisons supermarket chain. As corporate finance continues to evolve in Britain, market observers will be watching closely for any developments that may impact employment, corporate governance, or the strategic direction of key industries.
Source: EQT press release, Thomson Reuters Financial & Risk data