CMA investigates acquisition of IHS Markit by S&P Global
The UK Competition and Markets Authority (CMA) is investigating the proposed acquisition of IHS Markit by S&P Global.
The CMA is considering whether it is or may be the case that this transaction, if carried into effect, will result in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002 and, if so, whether the creation of that situation may be expected to result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services.
To assist it with this assessment, the CMA invites comments on the transaction from any interested party. Invitation to comment closes 12 July 2021.
S&P Global and IHS Markit continue to expect to close the proposed merger in the second half of 2021, subject to the satisfaction or waiver of specified closing conditions.
In November 2020, S&P Global and IHS Markit announced their entry into a definitive merger agreement to combine in an all-stock transaction which values IHS Markit at an enterprise value of $44 billion, including $4.8 billion of net debt.
Under the terms of the merger agreement, which has been unanimously approved by the Boards of Directors of both companies, each share of IHS Markit common stock will be exchanged for a fixed ratio of 0.2838 shares of S&P Global common stock. Upon completion of the transaction, current S&P Global shareholders will own approximately 67.75% of the combined company on a fully diluted basis, while IHS Markit shareholders will own approximately 32.25%.
In March 2021, shareholders of IHS Markit voted overwhelmingly to approve the deal.