S&P Global's Acquisition of IHS Markit Pending Following CMA’s Phase 1 Findings

The UK Competition and Markets Authority (CMA) has released the results of Phase 1 investigation towards S&P’s acquisition of IHS Markit.

After a thorough investigation of S&P and IHS Markit’s business activities, CMA found that the deal raises competition concerns in only a handful of markets involving the supply of certain commodity price assessments in the UK. More specifically, the merger would raise competition concerns in a limited number of markets, specifically in the supply of price assessments of biofuels, coal, oil and petrochemicals in the UK.

The UK regulator highlighted that it will clear S&P’s merger with IHS Markit if competition concerns in certain commodity price assessments are addressed.

According to the announcement made by IHS Markit, the parties have previously discussed the divestiture of IHS Markit's Oil Price Information Services (OPIS); Coal, Metals and Mining; and PetroChem Wire businesses. The parties have agreed to a sale of these businesses to News Corp, subject to approval of relevant antitrust authorities. Additionally, the companies have further discussed with the CMA the divestiture of IHS Markit’s base chemicals business (comprising the Market Advisory Service and World Analysis businesses) to address any remaining concerns.

S&P Global and IHS Markit will now formally submit these remedy proposals to the CMA. The companies consider the proposed remedies sufficient to address the CMA’s competition concerns and obtain clearance for their transaction in Phase 1.

The CMA will provisionally decide whether the remedy proposals are sufficient by November 2, 2021.