Robinhood shares gain on Q2 beat, as user and crypto growth accelerate
Inveting.com -- Bureau Veritas SA (EPA:BVI) and SGS SA (SIX:SGSN) on Monday called off discussions that were aimed at forming a global leader in the product-testing industry, without providing an explanation.
In separate announcements on Monday, the French company Bureau Veritas and the Swiss firm SGS, headquartered in Geneva, confirmed the end of their talks.
In a statement, Bureau Veritas reiterated its belief that consolidation in the testing, inspection, and certification sector is beneficial. In contrast, SGS stated that its own growth strategy remains a priority.
While SGS stock jump over 3% on the news, Bureau Veritas shares dropped by as much as 2.8% at 4:20 ET (09:20 GMT).
Earlier this month, both companies had confirmed reports from Bloomberg about their talks, which aimed to merge into a European powerhouse in testing and certification, with a combined market capitalization approaching $33 billion.
The testing, inspection, and certification market, valued at over $230 billion, is undergoing consolidation.
This is driven by increasing regulatory requirements, particularly those related to environmental standards.
Despite its size, no single company dominates the market, with players like Trojan Technologies, Dekra, and Intertek competing with Bureau Veritas and SGS.
The proposed deal was planned as an all-stock transaction, with SGS shareholders expected to have a majority in the new entity, while Bureau Veritas’s stakeholders were set to receive some form of premium.