UK Watchdog Says S&P Global, IHS Markit Deal May Harm Competition -- Update
October 19 2021 - 8:40AM
Dow Jones News
By Ian Walker
The U.K. Competition and Markets Authority said Tuesday that
S&P Global Inc.'s planned $44 billion acquisition of IHS Markit
Ltd. could harm competition within its markets and that it is
considering whether to accept undertakings from the companies to
address this.
The watchdog said it is concerned that the merger could lead to
limited competition in a number of commodities markets.
Specifically it said the companies have significant combined
presence in price assessments of biofuels, coal, oil, and
petrochemicals in the U.K.
The parties have until Oct. 26 to offer a solution that the CMA
may accept, otherwise the deal will be referred for a further
review.
S&P Global and IHS said Tuesday that they have discussed a
number of divestiture options which they believe should satisfy the
U.K. regulator's concerns, and which they will now formally submit
to the CMA.
They have already agreed to sell IHS Markit's Oil Price
Information Services; Coal, Metals and Mining; and PetroChem Wire
businesses to News Corp, subject to the relevant regulatory
approvals.
The companies have also discussed with the CMA the possible sale
of IHS Markit's base chemicals business to address any remaining
concerns.
"The companies consider the proposed remedies sufficient to
address the CMA's competition concerns and obtain clearance for
their transaction in Phase 1," they said.
S&P Global in November last year agreed to acquire IHS
Markit, in a deal that would combine two of the largest providers
of data to Wall Street.
Write to Ian Walker at ian.walker@wsj.com
(END) Dow Jones Newswires
October 19, 2021 08:25 ET (12:25 GMT)
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