Investing,com -- Shares of Swiss-based SGS (SIX: SGSN ) fell over 5% on Wednesday after it confirmed that it is in preliminary merger talks with Bureau Veritas (EPA: BVI ), a French multinational, to create a testing and certification powerhouse valued at over $30 billion.

The two firms, which specialize in testing and certifying products, ingredients, and processes, provided limited information about the talks on Wednesday, noting that no agreement has been guaranteed.

Any potential deal would require the backing of Wendel (EPA: MWDP ) SE, the largest shareholder of Bureau Veritas with a 26.5% stake, as per data compiled by Bloomberg.

The agreement would also likely need approval from the French government.