Intertek Rejects Third EQT Takeover Bid Amid Undervaluation Claims

The board of Intertek, a FTSE 100 company specializing in quality assurance and product testing, has rejected a revised takeover proposal from the Swedish private equity firm EQT. The bid, which represents the third offer from the equity firm in recent weeks, was valued at £8.9 billion, or £10.3 billion when including debt.

On May 8, 2026, the Intertek board announced its decision to decline the offer, which proposed terms of £58 per share. The company, which has provided testing and assurance services globally for 140 years, currently maintains a market value of approximately £7.8 billion.

In a statement released on May 8, 2026, the board detailed its reasoning for the rejection, citing both the valuation of the firm and the potential risks associated with the deal’s structure.

The board of Intertek has carefully reviewed the further revised proposal with its advisers and unanimously concluded that it significantly undervalues Intertek and its future prospects and there is significant execution risk given its conditional nature. Accordingly, the Intertek Board unanimously and unequivocally rejected the further revised proposal on 8 May 2026.

Intertek Board

The rejection comes as Intertek considers a strategic shift involving the potential spin-off of its energy and infrastructure division. The board indicated that such a move would result in the creation of two high-quality global businesses with strong financial and operational track records. According to the board, the company remains focused on maximizing value for its shareholders through this strategic review.

Several major shareholders, representing nearly £300 million of the firm’s value, have urged Intertek to resist the Swedish firm’s advances. These investors argue that EQT’s current valuation fails to account for the added value that the proposed division spin-off would provide.

Hugh Yarrow, a co-founder and portfolio manager at Evenlode Investment, which holds a 1.5 per cent stake in Intertek, told City AM that the firm’s intrinsic value exceeds the level of the latest bid, even before considering a takeover premium. Yarrow noted that Intertek holds a strong position in the global inspection and testing sector and possesses significant growth potential for generating cash.

Yarrow further suggested that the decision to dispose of energy and infrastructure assets is a logical step to realize value that has been under-recognized within the current portfolio, allowing the company to focus on its market-leading assurance and testing division. He observed that the testing arm, which generates roughly three-quarters of the company’s profit, currently trades at a significant discount compared to its global peers.

Similarly, Charles Carter, a portfolio manager and managing director at Marathon Asset Management, which owns two per cent of Intertek, argued that EQT’s bid was based on a low market price observed in March. Carter asserted that the company possesses some of the industry’s best assets, which are not reflected in the current share price.

Carter stated his view that the fair value of the company is over £60 a share, suggesting that any offer for control of the firm should include a premium above that figure.

Market analysts at Oddo BHF, a European asset manager, provided a different benchmark for an acceptable offer, suggesting a figure closer to £61.50 per share. However, the analysts also noted that a fourth offer from EQT is unlikely to materialize.

Despite the board’s stance and the support of some major investors, there has been internal pressure to engage with the suitor. Bloomberg reported that approximately 20 top investors had been pushing for Intertek to enter discussions with EQT. Among them, Pinestoke Asset Management, which holds a four per cent stake, wrote to the board urging the opening of a dialogue with the Swedish firm.

Intertek’s share price closed at 4,910p on May 8, 2026. While the price dropped 2.7 per cent during that day’s trading, the stock has risen more than seven per cent since the beginning of the year. Intertek declined to comment on the matter.