Covid Test Maker Eurofins To Replace Atos in France’s CAC 40
(Bloomberg) -- Eurofins Scientific SE will join France’s benchmark CAC 40 Index after the Covid-19 pandemic caused a boom in laboratory testing that resulted in the company’s market value almost tripling.
The Luxembourg-based company is set to replace the technology-services firm Atos SE, with the changes set to take place after markets close Sept. 17, Euronext said in an emailed statement late Thursday.
Eurofins shares have jumped 81% this year, while Atos shed 43%, recording the CAC 40’s worst performance year-to-date.
Eurofins, founded in 1987 by Chief Executive Officer Gilles Martin, provides testing for the food, environmental, cosmetic and pharmaceutical industries. The company has expanded via acquisitions, with the quick pace of growth drawing scrutiny of its accounts and corporate governance from short sellers in 2019. The company made efforts to address those concerns.
For its part, Atos has been trying to address the slump in its share price. The company is exploring a sale of legacy information technology businesses, including some outsourcing operations, as it focuses on higher-growth areas.
It’s not the first time that Covid-19 fallout leads to changes in the CAC 40’s makeup. Call-center operator Teleperformance SA, which touched a fresh record high this week, last year replaced the caterer Sodexo SA in the benchmark index after getting a boost from work-from-home trends.
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