Data Giants IHS Markit and S&P Global Pass Two Key Regulator Hurdles in the U.K. and European Commission
Posted on 10/23/2021
The UK Competition and Markets Authority (CMA) is not concerned about the general merger of S&P Global (NYSE: SPGI) and IHS Markit (NYSE: INFO). The regulator sees that potential competition concerns are linked to certain commodity and petrochemical price assessments in the U.K.
To address the UK Competition and Markets Authority’s potential concerns, S&P Global and IHS Markit have previously discussed the divestiture of IHS Markit’s Oil Price Information Services (OPIS); Coal, Metals and Mining; and PetroChem Wire businesses. As previously announced, the parties have agreed to a sale of these businesses to News Corp, subject to approval of relevant antitrust authorities. The companies have further discussed with the CMA the divestiture of IHS Markit’s base chemicals business (comprising the Market Advisory Service and World Analysis businesses) to address any remaining concerns.
S&P Global and IHS Markit will now formally submit these remedy proposals to the UK Competition and Markets Authority. The companies consider the proposed remedies sufficient to address the CMA’s competition concerns and obtain clearance for their transaction in Phase 1. The CMA will provisionally decide whether the remedy proposals are sufficient by November 2, 2021.
European Commission
S&P Global and IHS Markit announced that they have received a conditional Phase 1 approval for their US$ 44 billion merger from the European Commission (EC), marking another significant step toward the combination of these highly complementary companies. In response to concerns raised by the European Commission, S&P Global has committed to divest CUSIP Global Services and its Leveraged Commentary and Data (LCD) business, together with a related family of leveraged loan indices.
Advisors
Goldman Sachs & Co. LLC is serving as financial advisor to S&P Global, and Wachtell, Lipton, Rosen & Katz is serving as legal counsel. Davis Polk & Wardwell LLP is serving as legal counsel for IHS Markit.
