How do you see the latest deal by S&P to acquire HIS Markit announced on Monday 30 November 2020?

In what will go down as one of the biggest deals among data dissemination companies, S&P Global also called Standard & Poor, will buy IHS Markit in a deal valued at close to $44 billion. This deal comes in the aftermath of the LSE bid to buy out Refinitiv, another data giant globally.

This deal between S&P Global and HIS Markit will create a virtual giant in financial information. In fact, it is likely to create an outfit so huge that the global competition rules may come into play and approvals may become quite a tough affair.

The acquisition will be an all-stock-swap acquisition and will also include $4.8 billion in debt. Under the terms and conditions of the deal, 1 share of IHS Markit will be exchanged for 0.2838 shares of S&P Global. Being an all-stock deal, only holdings will change.

For example, once the deal is completed, shareholders of S&P Global will own 67.75% of the merged entity so created while IHS Markit shareholders will own 32.25% in the new entity. This will create a global data giant covering financial data, derivatives data, global ratings, macro data, sectoral specializations and defence expertise.

S&P is a world renowned rating agency and a data provider on capital and commodity markets, apart from derivatives and currencies. IHS Markit is famous for its monthly PMI Manufacturing and Services data. In addition to the PMI data franchise, HIS Markit also has a number of unique industry specific insight products.