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IHS Markit plans for partial divestiture ahead of S&P merger

Neudata News
19 May 2021

IHS Markit is planning to sell subsidiary businesses that supply pricing data for certain commodities ahead of its merger with S&P Global.

The two firms announced last week that IHS Markit would divest from its Oil Price Information Services (OPIS) business and its Coal, Metals and Mining business, citing feedback from regulators.

The decision was taken to “ensure the pending merger of both companies closes on a timely basis,” they said in a joint statement. The divesture will also have to be reviewed and approved by regulators and anti-trust authorities.

S&P announced last December that it would acquire IHS for USD 44bn, in an all-stock deal that would combine two of the largest data providers on Wall Street. The combined entity is expected to marry S&P’s expertise in country- and company-level debt ratings and data on capital and commodity markets, with IHS’s pricing and reference data, particularly within the automotive, energy, financial services, defence and maritime sectors.

At the time of its announcement, the deal was the largest corporate merger of 2020.

In its updated statement, the two firms confirmed that they are still on track to merge in the second half of this year, subject to regulatory approvals.