SGS, Bureau Veritas Eye €400 Million in Savings From Combination

SGS SA and Bureau Veritas SA are seeking significant savings from a tie-up as talks advance to build a European champion for testing and certification with a combined market value of more than $33 billion.

Geneva-based SGS and France’s Bureau Veritas estimate an annual reduction in costs of more than €400 million ($412 million) at the combined entity, according to people familiar with the matter.

Negotiations are very advanced and the key details of a business combination agreement, or BCA, could be ironed out over the coming days, said some of the people, asking not to be identified because discussions ...