Private Equity's Liquidation of London Goes On

One day, there won’t be any decent London-listed companies left for private equity funds to buy. The latest attempt at a UK leveraged buyout may be remarkable for its size, but it otherwise conforms to a familiar pattern that’s seeing the market gradually liquidated by cash bids from buyout firms and foreign bidders.

Intertek Group Plc on Wednesday said it was minded to accept a proposal from EQT AB valuing it at £10.6 billion ($14.3 billion) including net debt. Intertek is a classic UK target. The FTSE 100 company tests goods for compliance with regulatory standards — an attractive niche with durable demand. It also has little to do with the struggling British economy, with the overwhelming majority of sales coming from overseas.