FTSE 100 constituent Intertek, a global provider of quality assurance services, has confirmed it will be acquired by Swedish buyout firm EQT in a deal valued at approximately £10.6bn. The agreement, announced on Thursday, sees EQT offering £60 per share for the company, following previous rejections by Intertek of earlier proposals from the Swedish private equity group.
This acquisition marks a significant moment for the London Stock Exchange, as it will lead to the departure of another major company from its premier index. Intertek's services span a wide range of industries, including product testing, inspection, and certification, playing a crucial role in global trade and safety standards. Its exit highlights an ongoing trend of UK-listed companies being acquired by foreign entities or private equity firms.
The move comes after a period of increased activity in the UK mergers and acquisitions market, with several prominent British companies becoming targets for international buyers. Such takeovers often raise questions about the attractiveness of the London market for retaining large, established companies, and the broader implications for the UK's financial landscape.
For Intertek, the deal represents a new chapter under private ownership, potentially allowing for strategic shifts and investments away from the pressures of public market scrutiny. EQT, a prominent global investment organisation, will gain control of a leading player in the essential testing, inspection, and certification (TIC) sector.
The departure of Intertek from the FTSE 100 will necessitate a reshuffle within the index during its next quarterly review. This will likely see another large-cap company promoted from the FTSE 250 to fill the vacant spot, impacting passive funds and tracker investments tied to the index's composition.