Banks are competing to assemble roughly £5bn ($6.7bn) in debt packages to fund EQT's potential take-private acquisition of Intertek, the British product-testing group. The financing structure involves issuing debt in both euros and dollars, allowing EQT to tap multiple investor pools and negotiate better terms. Morgan Stanley, which is advising EQT on the bid, will likely help provide financing alongside other major banks.

The debt competition comes after a prolonged slowdown in dealmaking that left lenders with pent-up capital eager to deploy. EQT previously offered £60 ($80) per share in cash for Intertek, valuing the London-listed company at approximately £9.2bn ($12.3bn). The firm secured an extension, pushing the deadline for a firm offer to June 18, to complete due diligence and governance work.

Securing committed financing now positions EQT to move swiftly if it proceeds with the acquisition. Large, well-known take-private transactions like Intertek represent lucrative mandates that banks are actively pursuing, particularly as M&A activity shows signs of recovery. This financing pipeline reflects growing confidence in private equity deals returning to the market.

The deal highlights how private equity firms can leverage competitive bank financing to fund major acquisitions, potentially setting a precedent for similar take-private transactions in Europe. With banks offering favorable pricing amid strong demand for quality M&A paper, EQT gains significant flexibility in executing its strategy.