S&P Global Negotiates to Buy IHS Markit for About $44 Billion

According to a report in the Wall Street Journal, Financial services giant S&P Global Inc. is negotiating to buy IHS Markit, the leading source of information and insight in critical areas that shape today's business landscape, at a valuation of around $44 billion. The deal could be announced as soon as possible.

Based on the announcement, Wall Street Journal wrote, "according to people familiar with the matter, a landmark deal that would combine two of the largest providers of data to Wall Street."

If the deal happens, financial institutions ranging from top-tier global banks, to institutional investors and Retail FX brokers would benefit from the combination, for the firms would create a heavyweight in the increasingly competitive market for financial information.

At that price, it would be the biggest deal of 2020 and a sign deal making activity is accelerating as breakthroughs in COVID-19 vaccine-related developments improve the economic outlook.

IHS Markit, based in London, has a market value of about $37 billion; S&P's is about $82 billion.

IHS Markit, formed in 2016 by the merger of two smaller players, tracks millions of data points in financial markets. It owns software that big Wall Street banks use to underwrite corporate stock and bond offerings, and tracks transportation and energy data, the latter of which could pair with S&P's commodities business, Platts.

S&P Global is renowned 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.

S&P Global and IHS did not immediately respond to Reuters’ requests for comment.

If the two companies get a deal on this acquisition, the transaction is likely to face close examination from competition watchdogs, as the market for financial information becomes increasingly concentrated.