SGS ends talks over potential $30 bln merger with Bureau Veritas (updated)

Bureau Veritas SA

27/01/2025 06:24

(Updates throughout with quote from company, background,
details)
       ZURICH, Jan 27 (Reuters) - Switzerland's testing and
inspection group SGS  SGSN.S  said on Monday it had ended talks
over a potential $30 billion merger with French rival Bureau
Veritas  BVI.PA .
    "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 brief statement.
        A spokesperson for SGS said the company had nothing to
add at present about the reasons for its decision.
  
        SGS said earlier this month it was in talks to combine
with Bureau Veritas in what could have been an all-stock
transaction, according to a person familiar with the matter.
  
        That would have meant that SGS shares would trade in
Paris, a fact which could have led to 
    complications
     due to tit-for-tat measures imposed years ago during a
Swiss-EU stock market row.
  
        Such listings of Swiss shares in the EU are forbidden by
protective measures Switzerland issued in 2019 when the bloc
withdrew its recognition of equivalence for the Swiss exchange
amid a dispute over bilateral trade talks at the time.
  
        Without commenting specifically on the SGS-Bureau
Veritas deal, Swiss financial authorities acknowledged that the
situation presented potential problems for the tie-up.
  
        It is unclear what, if any, influence the stock market
issue had in bringing an end to the talks.
  

 (Reporting by Paolo Laudani and Dave Graham
Editing by Friederike Heine)
 ((Paolo.Laudani@thomsonreuters.com;))