Talks about a potential merger between two testing and certification lab giants, SGS and Bureau Veritas, have ended with no deal.
“SGS and Bureau Veritas have been exploring a potential combination. The discussions have not resulted in an agreement and have ended,” SGS said in a press release, adding that it remains focused on executing its Strategy 27 for growth.
Bloomberg News had originally reported that there were advanced merger discussions happening between the two companies that would result in a $33 billion European testing and certification giant, and that details of a merger were expected to emerge in coming weeks.
Both Bureau Veritas and SGS offer a wide range of test-related services, including connectivity testing to meet regulatory rules and device certification, as well as various cybersecurity, and technology-related certifications related to the needs of the wireless ecosystem.
The combination of the two companies would have brought unprecedented consolidation to the inspection, testing and certification market. Reuters reported that a combination of the two companies would “dwarf competitors” in a market where the four largest providers have a combined market share of between 20-25%.
For its part, Bureau Veritas put out a statement this week that the discussions with SGS had ended without an agreement “despite a strong belief in the value of consolidation in the Testing, Inspection and Certification sector.”
Meanwhile, however, Bureau Veritas did proceed with a different acquisition. The company announced last week that it had signed an agreement to acquire cleaning and disinfectant supply company Contec AQS and its two subsidiaries, Exenet and PMPI. Bureau Veritas said that the purchase was in line with its strategy to expand leadership in the buildings and infrastructure market. Financial details of the transaction were not disclosed; it is expected to close in March of this year.
Bureau Veritas has been on an acquisition spree of late, with purchases since November 2024 involving companies in a number of areas including quality management in luxury goods, the infrastructure and buildings market in APAC, and energy and renewables. The company has outlined active management of its portfolio and using accelerated mergers and acquisitions as part of its Leap 28 growth strategy.
