Intertek has stated that it would be minded to recommend EQT’s £10.6bn takeover proposal to its shareholders, should the Swedish private equity firm make a formal offer.

The FTSE 100 product testing and certification company said that while it remains confident in its standalone strategy and value creation opportunities, and having rejected previous bids, it believes that the terms of the final proposal deliver cash value to its shareholders.

The offer comprises £60 in cash per share, as well as the final Intertek dividend of up to £1.07 per share for the 2025 financial year.

Intertek said the final proposal is subject to a number of preconditions, including completion of confirmatory due diligence, and the board has agreed to provide EQT with access to due diligence on a customary basis.

In light of this, the FTSE listed firm has paused further work on its strategic review announced last month.

Furthermore, the Panel on Takeover and Mergers has consented to an extension to the date by which EQT must either announce a firm intention to make an offer for Intertek. EQT must state its intention no later than 11 June.

Intertek’s share price increased by over 6%, marking a 48% jump in the last month.

Head of markets at AJ Bell, Dan Coatsworth, said the new offer indicates Intertek’s "willingness to support a deal" if EQT makes a formal bid.

He concluded: "The wording of the announcement gives the impression that shareholders have put pressure on Intertek’s board to support a deal.

"Intertek hasn’t traded as high as £60 a share since 2021, and such a bid would represent a 38% premium to the price just before EQT’s interest was originally disclosed. That’s in line with the average bid premium year-to-date on the UK stock market, according to analysis by AJ Bell. Shareholders might feel it is better to take the cash now as there is no guarantee that a break-up of Intertek via a demerger would lead to a quick value uplift."

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