UK product testing firm Intertek agrees to $14.5 billion EQT buyout

By Prerna Bedi and Yamini Kalia

June 18 (Reuters) - Product testing firm Intertek has agreed to be taken over by Swedish private equity firm EQT for around £10.9 billion ($14.5 billion) including debt, the companies said on Thursday, following months of negotiations.

EQT had made four bids for the British group since mid-April, three of which were rejected on valuation grounds before Intertek bowed to investor pressure to strike a deal amid questions over its plans to break the company up.

The £61.08 per share cash and dividend deal values Intertek's equity at £9.5 billion, and would mark Britain's third-largest take-private deal, behind the acquisitions of airport operator BAA in 2006 and pharmacy chain Alliance Boots in 2007, according to LSEG-compiled data.

The cash component of EQT's offer represents a 40% premium to Intertek's closing price on April 15, the day before EQT's first approach was made public.

Morningstar analyst Ben Slupecki said the deal made sense for Intertek, with the market undervaluing its assets prior to EQT's approaches.

Intertek shares were 1.5% higher at £58.05 by 1331 GMT. They have gained over 31% since EQT's first approach, but are still below the offer price.

EQT had offered £51.50, £54 and £58 per share in cash, bids that were all rebuffed by Intertek as it explored splitting itself into two standalone businesses.

However, shareholders including Palliser Capital, PrimeStone Capital, and Lost Coast Collective - an investment firm founded and run by Nelson Peltz's son Matthew - urged Intertek to engage with EQT.

"We are pleased to see this deal agreed and believe it represents a positive outcome for shareholders," Palliser founder and CIO James Smith said.

A spokesperson for PrimeStone, which holds 0.5% of Intertek, said the firm plans to vote in favour of the deal, adding that the sector remains ripe for further consolidation.

The deal adds to a growing number of London-listed firms being bought out by foreign bidders, with M&A activity tripling to $192 billion in the first four months of 2026 from year-ago levels.

Wealth funds Abu Dhabi Investment Authority and Mubadala will become minority Intertek shareholders following the deal, with stakes of 16% and 8%, respectively.

Morgan Stanley, Barclays and Deutsche Bank advised EQT while JPMorgan, Goldman Sachs and PJT Partners were Intertek's advisors.

($1 = £0.7532)

(Reporting by Prerna Bedi and Yamini Kalia in Bengaluru and Anousha Sakoui in London, additional reporting by Devika Nair; Writing by Pushkala Aripaka; Editing by Joe Bavier, Kirsten Donovan)