Intertek Rejects £10.3 Billion Takeover Bid from EQT

The board of Intertek, the FTSE 100 quality assurance and product testing giant, has unequivocally rejected a third takeover attempt from Swedish private equity firm EQT. Despite a sweetened offer, the 140-year-old company maintains that the proposal fails to reflect its intrinsic value and future growth potential.

The Terms of the Bid

EQT has made three offers in recent weeks, with the latest bid standing at £8.9 billion, or £10.3 billion when including debt. The revised proposal offered shareholders £58 per share, a significant jump compared to Intertek’s market value of approximately £7.8 billion.

On May 8, 2026, Intertek’s board unanimously rejected the offer. In an official statement, the board noted that the proposal “significantly undervalues Intertek and its future prospects” and highlighted “significant execution risk given its conditional nature.”

Strategic Pivot: The Energy and Infrastructure Spin-off

A central point of contention in the valuation is Intertek’s recent announcement that it is considering spinning off its energy and infrastructure division. The board believes this strategic move would “create two high-quality global … businesses with a strong historical operational and financial track record,” allowing the company to maximize shareholder value.

Investors argue that EQT’s bid ignores the added value this separation would bring. Hugh Yarrow, a co-founder and portfolio manager at Evenlode Investment—which holds a 1.5 per cent stake in the firm—stated that disposing of these assets makes sense as it will “realise under-recognised value within the portfolio” while keeping the company focused on its market-leading testing and assurance division.

Investor Divide: Pressure vs. Patience

While the board remains firm, the shareholder base is divided on how to handle the Swedish suitors.

• The Bulls: Charles Carter, managing director and portfolio manager at Marathon Asset Management (owning 2 per cent), argues that fair value exceeds £60 a share, asserting that any takeover bid should include a premium for control above that price. He noted that EQT’s bid appeared to be based on a “low” market price from March.
• The Pragmatists: Pinestoke Asset Management, which holds a 4 per cent stake, has reportedly urged the board to open a dialogue with EQT.
• The Analysts: Experts at Oddo BHF suggest an “acceptable” offer would need to be closer to £61.50 per share, though they believe a fourth offer from EQT is unlikely.

Market Reaction and Outlook

Intertek’s share price closed at 4,910p on Friday. While the stock saw a 2.7 per cent dip in daily trading following the rejection, it remains up more than 7 per cent for the year to date.

The standoff highlights a classic corporate struggle: a board focused on long-term strategic unlocking of value versus investors weighing the immediate certainty of a private equity buyout. With the board “fully focused on maximising value for shareholders” through its internal restructuring, EQT faces a steep climb if it intends to return with a fourth, more aggressive offer.