Major Inspection Firms Consider Merger

Paris-based Bureau Veritas and Geneva-based SGS, two leading inspection, certification, and testing companies, are reportedly in talks to combine.

The two firms - which are major providers of services to the maritime and energy sectors - have released statements confirming that they are engaged in preliminary talks.

Bureau Veritas’ statement confirmed that talks were in progress, ‘Following recent media commentary, Bureau Veritas indicates that it is in discussion with SGS regarding a potential business combination. There can be no assurance that these discussions will result in a transaction or other agreement’.

SGS also issued a statement with a similar sentiment and concluded that ‘SGS will not comment further and will communicate in due course, if and when applicable’. 

Should the combination proceed, it would see two of the world’s largest inspection, certification, and testing companies form a $30bn international giant. 

At the time of writing, SGS operates 2,700 facilities across 119 countries, supported by a workforce 99,250 strong. 

Bureau Veritas - which was founded in 1828 - operates across 140 countries, supported by a staff of 83,000 employees. 

Reuters reported that in the wake of the issuance of the two statements Bureau Veritas shares jumped 6% in early trade whilst SGS shares declined about 6%. 

Commenting on the potential merger, analyst Daniel Buerki, speaking to Reuters, said: 

“There has never been a transaction of this size in the sector before. 

The TIC (testing, inspection, and certification) market is not very consolidated, with the four biggest players having a combined market share of 20-25%”.

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