Intertek is the third FTSE 100 company to be taken out this year, alongside fund manager Schroders and specialist insurer Beazley. The product testing and quality inspection firm agreed to a £10bn takeover by a consortium led by Swedish private equity firm EQT.
Another FTSE 100 Firm Falls to Private Equity
Nils Pratley comments on the lack of new listings in London. While Intertek's takeover is not as significant as Arm Holdings' sale to SoftBank in 2016, it underscores persistent issues. The board recommended EQT's fourth offer after a bidding process that started at £51.50 per share and ended at £60.
The takeover was predictable, with the board initially calling the bids derisory before capitulating. Shareholders preferred cash certainty at a 60% premium over alternative strategies like a US listing of consumer operations.
Intertek joins Schroders and Beazley as FTSE 100 companies acquired this year. Energy firm DCC is also in talks with KKR and Energy Capital Partners. While takeovers are normal, the lack of new listings is concerning. Only three flotations have occurred on London's main market this year, none large enough for the FTSE 100.
Derby-based Doncasters, founded in 1778, is listing in the US for a higher valuation, highlighting London's struggle to attract mid-market aerospace firms. Brokers claim the pipeline of new arrivals is improving, but the perception of London as an undervalued market for private equity hunting persists. A major new listing is needed to shift this impression.
