S&P Global and IHS Markit have agreed to sell chemical sector pricing data and forecasting business Base Chemicals to media and information services giant News Corp, for $295m in cash.
In October, S&P and IHS Markit received a conditional Phase 1 approval from the European Commission (EC) for their $44 billion merger. The sell-off follows the UK Competition and Markets Authority request that IHS Markit divest Base Chemicals as part of the merger plans, and News Corp's acquisition of Base Chemicals is subject to customary closing conditions, including the completion of the merger.
Base Chemicals, which in its most recent fiscal year is expected to generate $65m in revenue, offers Market Advisory services, which provide pricing insights and weekly/monthly reports; and World Analysis, which produces annual reports and maintains a database of trends and long-term forecasts. Following its sale, the business will become part of Dow Jones' Professional Information Business, and benefit from the latter's news, research and events services. The Base Chemicals business will sit alongside OPIS, the energy and renewables data and information business acquired by News Corp from S&P Global and IHS Markit in August.
Robert Thomson (pictured), CEO of News Corp, comments: 'We are delighted with the opportunistic acquisition of Base Chemicals, which complements our purchase of OPIS, and will certainly strengthen the highly profitable and decidedly digital Professional Information Business at Dow Jones. From setting price benchmarks for chemicals, to tracking renewables and monitoring resource trends that impact most companies, we expect the incomparable intelligence of Base Chemicals, combined with the news and analysis of Dow Jones, will be formidable and lucrative'.
Web sites: www.spglobal.com, www.ihsmarkit.com and www.newscorp.com .
All articles 2006-22 written and edited by Mel Crowther and/or Nick Thomas unless otherwise stated.