S&P Global Inc and IHS Markit Ltd, which are planning to merge, have reportedly struck deals to sell off two subsidiaries to assuage regulators’ concerns.
S&P Global plans to sell its Cusip Global Services business to FactSet Research Systems Inc. for $1.93 billion while IHS Markit will sell its Base Chemicals business to News Corp for $295 million, according to The Wall Street Journal.
S&P Global and IHS Markit announced in late 2020 that S&P would acquire IHS Markit for about $44 billion in an all-stock transaction.
But questions from regulators about the deal’s competitive effects have led the companies to pledge to divest some of their businesses.
The Cusip business that FactSet plans to buy helps investors track their holdings by assigning ID numbers to securities. Cusip Global Services manages the system on behalf of the American Bankers Association.
S&P and IHS Markit expect the merger to close in the first quarter of 2022, The Journal said.
Regulators in the US and abroad are tracking divestments such as the ones the companies announced Monday ahead of giving the merger their final approval,
In another move to satisfy regulatory requirements, The Journal also reported that S&P said it plans to sell its leveraged commentary and data business. That transaction could occur after the combination with IHS Markit closes, per the European Commission’s conditional approval of the merger.