SGS Rises Most in Six Weeks on Chinese Acquisition: Zurich Mover
SGS SA (SGSN), the world’s largest product inspector, rose the most in almost six weeks after saying it bought Qingdao Yuanshun Automotive Services Co. Ltd.
SGS advanced as much as 3.1 percent to 2,168 Swiss francs in Zurich, the most since May 8, and was up 3 percent at 12:05 p.m. local time, giving the Geneva-based company a market value of about 17 billion francs ($18.4 billion). More than 6,000 shares changed hands, or 42 percent of the three-month average.
Qingdao Yuanshun, based in Qingdao in China’s Shandong province, specializes in vehicle testing and runs two stations. The company is privately owned and employs 72 people.
The acquisition marks the “first steps in the automotive strategy to enter the Chinese market,” Jean-Philippe Bertschy, a Zurich-based analyst with Vontobel, wrote in a note to investors. “The Qingdao Yuanshun Automotive Services acquisition is strategic, as SGS is entering the fast-growing Chinese vehicle inspection market.”
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