Testing and certification group Bureau Veritas has confirmed it is in talks to merge with its Swiss rival SGS in a deal valued at around $33bn.

A merger would be transformational for the wider shipping classification sector, creating an entity big enough to compete with Norwegian giant DNV.

Like BV, which has its marine classification business, SGS also has exposure to maritime. SGS is active in marine inspection, vessel vetting and fuel testing.

Sources with knowledge of the matter told the Financial Times that talks are ongoing, but there is “no guarantee that these discussions will result in any transaction or agreement”.

The Financial Times values the deal at €32bn ($33bn) for Paris-listed BV and SGS, which is listed on the SIX Swiss Exchange.

BV is believed to have been looking for possible merger partners for some years.

Last year, BV was rumoured to be a suitor of UK rival Lloyd’s Register.

While there was no indication of negotiations, the rumours were strong enough to prompt discussions at the most senior level at another rival within the maritime classification, sources told TradeWinds at the time.

This is not the first time that BV has approached SGS, according to an analyst quoted by the Financial Times.

Jean-Philippe Bertschy, head of Swiss equity research for investment manager Vontobel, wrote in a note: “We believe this is probably the third or fourth time such talks have taken place, but the first time they have gone public.”

A merger would reportedly require approval not only from the French state but also from the firm’s largest shareholder.

BV’s biggest shareholder is Paris-based investment firm Wendel, which has a 26.5% stake.

Groupe Bruxelles Lambert holds just over 19.1% of SGS.

Net profit for the BV group totalled €288.3m during the first half of 2024, according to its most recent financial report.

Its marine and offshore division generated 8% of BV’s €3bn revenue for the period, the smallest contribution of the group’s six business units.

That said, revenue for the division grew by 15% year on year during the first six months of 2024, making it BV’s third fast-growing business unit.

BV employs over 83,000 staff in 140 countries around the world. SGS has 99,000 employees.

The world’s largest maritime classification society DNV was created in 2013 when Det Norske Veritas merged with German firm Germanischer Lloyd.

DNV employed 15,000 people across more than 100 countries, as of January 2024.

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