Bureau Veritas at all-time high, SGS down on discussions over combination

Bureau Veritas SA

15/01/2025 08:44

** Shares in Bureau Veritas  BVI.PA  rise to an all-time
high while SGS  SGSN.S  falls after the companies said they were
in talks to combine
    ** J.P.Morgan analysts note both firms are looking to grow
in the U.S. and combining their businesses there might be one
way to accelerate that
    ** The broker adds the discussions might not be welcome by
all SGS shareholders as the company is on a trajectory of
improving margins by streamlining the portfolio and extracting
efficiencies
    ** Bureau Veritas has a heavy French exposure that it may
wish to dilute, given the challenged outlook for the French
economy and tax situation, RBC analysts add in a note
    ** Synergies are likely to be very significant, they add,
saying they are less certain about dis-synergies
    ** Bureau Veritas' stock up around 4.4% at 0837 GMT, hitting
a record high of 31.5 euros earlier in the session; SGS down
around 3.5% to one-month low

 (Reporting by Mathias de Rozario, Isabel Demtetz)
 ((mathias.derozario@thomsonreuters.com,
isabel.demetz@thomsonreuters.com))