S&P Global, IHS Markit Deal Gets Conditional European Nod
Posted by Colin Lambert. Last updated: October 25, 2021
S&P Global and IHS Markit have received a conditional Phase 1 approval for their $44 billion merger from the European Commission (EC), marking another significant step toward the combination of the companies. The EC decision comes days after the UK’s Competition and Markets Authority also gave a cautious thumbs up to the deal pending the companies formal notification they will divest some of IHS Markit’s commodities businesses.
“The European Commission’s decision provides clarity on the steps we will need to implement to complete our combination,” says Douglas Peterson, president and chief executive officer of S&P Global. “Once concluded, I expect the merger of these two great businesses to accelerate innovation within our core services and generate exciting new opportunities that deliver on our capacity to power the markets of the future.”
The companies have agreed to divest of IHS Markit’s Oil Price Information Services, Coal, Metals and Mining, and PetroChem Wire businesses, and are exploring a divestiture of IHS Markit’s base chemicals business in response to concerns raised by the United Kingdom’s CMA.
The firms say they expect the proposed remedies to be sufficient to satisfy global regulators, however, both the merger and the divestitures remain subject to further review and approval by global regulators and antitrust authorities, including in the US and Canada. The firms say they will continue to work constructively with those authorities.
“Our teams have been working closely with the relevant regulatory authorities to achieve this important milestone for our merger,” says Lance Uggla, chairman and chief executive officer of IHS Markit. “Once combined, the new company will deliver a broader set of information and insights that will drive the growth and performance of our customers.”
In response to concerns raised by the EC, S&P Global has committed to divest CUSIP Global Services and its Leveraged Commentary and Data business, together with a related family of leveraged loan indices.
The deal is now anticipated to close in the first quarter of 2022, subject to all regulatory approvals and the satisfaction or waiver of specified closing conditions.