Data giant S&P Global Inc has agreed to buy IHS Markit Ltd in a deal worth $44 billion that will be 2020’s biggest merger, creating a heavyweight in the increasingly competitive market in financial information.
The mega deal, which includes $4.8 billion of debt, is a sign that deal-making activity is accelerating as breakthroughs in developing Covid-19 vaccines improve the economic outlook.
Under the deal, each share of IHS Markit will be exchanged for a fixed ratio of 0.2838 shares of S&P Global stock, the two companies said in a statement. Post deal, S&P Global shareholders will own roughly 67.75 per cent of the combined company, while IHS shareholders will own about 32.25 per cent.
Debt ratings provider
S&P Global is known for providing debt ratings to countries and companies as well as data on capital and commodity markets worldwide. It became a standalone business in 2011 when its then parent McGraw-Hill separated S&P from its education business.
IHS Markit was formed in 2016 when IHS, whose businesses range from data on automotive and technology industries to publishing Jane’s Defence Weekly, bought Markit Ltd for around $6 billion. Markit provides a range of pricing and reference data for financial assets and derivatives.
The transaction is likely to face close scrutiny from competition watchdogs as the market for financial information becomes increasingly concentrated.