S&P Global is in advanced talks to buy IHS Markit, the research firm that owns more than 5,000 analysts, data scientists and financial experts as well as information professionals, for $44 billion in a deal that will speed up consolidation among Wall Street’s biggest information providers.
The value of IHS Markit was estimated at the close of trading in New York on Friday at $ 36.9 billion, after reaching a record value early last week, while the S&P company has an estimated capital of $82 billion after it increased by 25% in New York during 2020, and the merger between S&P and IHS will represent Markit is racing on a large scale as major companies try to raise their capital to meet the growing demand for information and analytics in the digital financial markets.
The deal followed the $27 billion acquisition of Refinitiv by London Stock Exchange Group LSE last year, as S&P Global, IHS Markit and several competitors such as MSCI have seen their shares rise in the past years, providing huge cash flow that allowed deal-making.
This deal will mark the second largest acquisition in the world in 2020, after the $56 billion deal for Chinese companies between the largest oil and gas companies in China worth $56 billion to sell their production lines to another local company, and the acquisition of IHS Markit will be inclusive of all company shares. launched on the stock market in 2014 with a value of $4.5 billion.
In another context, supervisory audit would pose a risk to the merger due to the overlap between the information provided by the two companies, as LSE is still negotiating with the European Union’s supervisory committee over its acquisition of Refinitiv, and the authorities responsible for competition between companies say they are concerned about some companies’ control of data Which will make it monopolize the field of information transmission.