SGS and Bureau Veritas end merger talks without agreement

Talks between SGS and Bureau Veritas regarding a potential combination have officially ended without an agreement.

The two leading testing, inspection, and certification (TIC) companies had been exploring a possible merger, but discussions did not lead to a deal. SGS confirmed that it remains committed to executing Strategy 27 – ‘Accelerating Growth, Building Trust’, which focuses on business expansion and delivering value to shareholders.

With more than 145 years of service excellence, SGS operates a global network of 2,700 laboratories and business facilities across 119 countries, supported by a workforce of 99,250 professionals. The company continues to prioritise quality, safety, compliance, and sustainability, ensuring it remains a trusted name in the testing, inspection, and certification industry.

SGS, publicly traded on the SIX Swiss Exchange (SGSN:SW), reassured investors that its long-term growth strategy remains intact, despite the conclusion of discussions with Bureau Veritas.

Meanwhile, Bureau Veritas reaffirmed its commitment to its LEAP | 28 strategy, which aims to drive sustained growth and performance improvements. Founded in 1828, Bureau Veritas operates in 140 countries with 83,000 employees. Bureau Veritas is publicly listed on Euronext Paris (BVI) and is included in major indices such as CAC 40, CAC 40 ESG, SBF 120, and CAC SBT 1.5°.

In January 2025, Bureau Veritas and SGS entered into discussions regarding a potential merger, aiming to create a leading entity in the testing, inspection, and certification (TIC) industry.

The primary motivation behind this proposed merger was to consolidate their market positions, achieve significant cost synergies estimated at more than EUR400 million (USD411.8 million) annually, and enhance their global service offerings.

Prior to engaging with SGS, Bureau Veritas had been in merger discussions with Intertek, a UK-based competitor.However, these talks were discontinued in favour of pursuing the merger with SGS, which was perceived to have fewer execution risks and better cultural alignment.

In terms of market positioning, SGS and Bureau Veritas are among the top players in the TIC sector, with Intertek also being a significant competitor.The proposed merger between SGS and Bureau Veritas would have created a company with a combined market value exceeding USD30 billion, surpassing Intertek and other competitors. The business portfolios of SGS and Bureau Veritas are largely complementary, with some overlap.Bureau Veritas has a strong focus on buildings, infrastructure, and marine inspection, while SGS has a more substantial presence in environmental, health, nutrition, and natural resources sectors. This complementarity was a driving factor behind the merger discussions, as it would have allowed the combined entity to offer a broader range of services across various industries

As of January 2025, Bureau Veritas had a market capitalisation of approximately EUR13.23 billion (USD13.62 billion), while SGS was valued at around EUR17.4 billion (USD17.92 billion).

Regarding annual revenues, the publicly listed firms in the TIC sector, including SGS, Bureau Veritas, and Intertek, collectively generate around USD32 billion, accounting for approximately 16% of the total market share. 

SGS and Bureau Veritas have not yet released their financial results for the fourth quarter of 2024. The earnings release for SGS is scheduled for 11 February 2025. Similarly, Bureau Veritas is expected to announce their Q4 2024 financial results in the coming weeks, though specific dates have not been confirmed. In their most recent financial disclosures, these companies reported the following annual figures:

• SGS: In 2023, SGS reported revenues of CHF6.62 billion (USD7.25 billion), a slight decrease from CHF6.64 billion (USD7.28 billion) in 2022.
• Bureau Veritas: For 2024, Bureau Veritas reported revenues of USD6.34 billion.