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NEW YORK / LONDON (dpa-AFX) – The financial data provider S&P Global wants to take over the competitor IHS Markit in a multi-billion dollar stock deal. The companies announced an agreement on Monday that valued IHS Markit at a total of $ 44 billion. That includes $ 4.8 billion in debt. It is the largest acquisition by a US company this year. The deal is expected to close in the second half of 2021 if the antitrust authorities approve.
IHS Markit was created in 2016 from the merger of the data service provider IHS with its British rival Markit, which is known for economic barometers such as the purchasing managers’ index. According to its own information, the group employs over 5,000 analysts, data researchers as well as finance and industry experts. Its headquarters are in London, but IHS Markit’s shares are traded on the New York Stock Exchange. S&P has long been a heavyweight in the financial world, the US group includes the rating agency of the same name and a number of stock market indices.
According to the takeover agreement, IHS shareholders are to receive 0.2838 S&P Global shares according to their own paper. For comparison: S&P Global is currently valued at around $ 82.8 billion on the stock exchange, while IHS Markit is valued at $ 36.9 billion. The intended deal was initially positively received by investors: The shares of IHS Markit rose sharply in New York trading, and S&P Global also posted price gains. The company will continue to be managed by S&P Global CEO Richard Thornburgh.
According to Bloomberg, the planned takeover would be the world’s second-largest deal this year after a $ 56 billion transaction in the Chinese oil industry. The financial data market has evolved with the advancing digitalization trading has developed into a lucrative and competitive business. In Europe, the London Stock Exchange LSE is currently trying to wrap up a € 27 billion takeover of the financial data provider Refinitiv. However, the EU competition watchdogs have raised concerns and are demanding concessions. / Ssc / stk / hbr / DP / jha