S&P Global, IHS Markit update on pending merger
S&P Global (NYSE:SPGI) and IHS Markit (NYSE:INFO) today announced that following feedback from regulators, the leadership from both companies have decided to explore a divestiture of IHS Markit’s Oil Price Information Services (OPIS) business, as well as IHS Markit’s Coal, Metals and Mining business. This decision was taken to ensure the pending merger of both companies closes on a timely basis.
The divestiture is subject to further review and approval by regulators and antitrust authorities. S&P Global and IHS Markit continue to work constructively with all regulatory bodies and antitrust authorities on their continued review of the proposed merger of the two companies, including the adequacy of the proposed divestiture.
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.