Two Global Testing, Inspection, and Certification Giants in Merger Talks
Two of the world's largest testing, inspection, and certification companies, French Bureau Veritas and Swiss SGS, are in talks to merge their activities. If the negotiations are successful, the fusion will give birth to a European giant worth €32 billion. The combination of the two companies would bring unprecedented consolidation to a highly fragmented sector that has historically seen little consolidation.
Each company has been working to refine its commercial strategy in anticipation of slowing growth following a pandemic-related surge. Sustainable development is one of the new areas driving the industry. The operation makes sense, given that their activities are complementary, with the two groups not serving the same industries. The competition authorities are unlikely to oppose the merger, although some divestments may be required in certain countries.
In 2023, SGS reported revenue of €7 billion. The French group's sales reached €5.9 billion. Both companies have double-digit operating profitability. Headquartered in Geneva, SGS has nearly 100,000 employees worldwide. BV is present in 140 countries and employs over 83,000 people globally.
We recall that Tunisian Hinda Gharbi holds the position of CEO of Bureau Veritas, making her the first African woman to lead a CAC 40-listed company.
