S&P Global Inc. (NYSE: SPGI) said on Monday that it will buy IHS Markit Ltd (NYSE: INFO) for £32.97 billion. The all-stock deal will mark the largest corporate acquisition this year. The two companies were negotiating the mega-deal for the past few months.
Following approval from antitrust regulators, the deal is expected to close next year in the second half. CEO Lance Uggla of IHS Markit commented on the news on Monday and said:
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“The next steps will be to receive regulatory approvals both in the U.S. and the EU, which we expect to take between six to nine months, and receive approval by our respective shareholders.”
In a report published in late September, IHS Markit said its net income came in at £127.61 million in the fiscal third quarter.
The mega-deal includes £3.60 billion of debt
At the time of writing, IHS Markit is valued at £29.64 billion and has a price to earnings ratio of 43.51. Shares of the British financial information and services company are currently more than 30% up year to date in the stock market after a 120% recovery since its year to date low in March, when the impact of COVID-19 was at its peak.
The mega-deal between the two companies also includes debt worth £3.60 billion. As per the agreement, Markit shareholders will receive 0.2838 shares of S&P Global for each share of IHS Markit.
The joint company will give 67.75% of ownership to S&P Global shareholders while the remaining will go to IHS Markit shareholders. CEO Douglas Peterson of S&P Global will head the combined company. After the completion of the deal, CEO Uggla of IHS Markit will serve the new company for a year as its special advisor.
CEO Douglas joins coalition on advancing disability inclusion
In an announcement last week, S&P Global said that CEO Douglas had joined the coalition on advancing disability inclusion.
S&P Global is currently less than 1% up on the intraday chart. On a year to date basis, it is now more than 25% up in the stock market. After a year to date low in late March, S&P Global has recovered close to 80% in the past 8 months.
At the time of writing, the American financial information and analytics company has a market cap of £63 billion and a price to earnings ratio of 35.04.