CMA will clear S&P-IHS Markit merger if concerns are addressed
By Michele Maatouk
Date: Tuesday 19 Oct 2021
(Sharecast News) - The Competition and Markets Authority said on Tuesday that it plans to clear S&P's £32bn merger with IHS Markit if the companies can address competition concerns in certain commodity price assessments.
The competition watchdog said an initial investigation had uncovered only "limited" concerns, mainly because the companies' activities were found to be complementary in nature or their combined presence was found to be relatively small.
However, it also found the merger could lead to competition concerns in a limited number of markets in which the their combined presence is more significant: the supply of price assessments of biofuels, coal, oil, and petrochemicals in the UK.
"Within each of these markets, the CMA found that S&P and IHS Markit have a significant combined presence, compete closely with one another and would face only limited competition after the merger," it said.
CMA senior director Colin Raftery said: "After a thorough investigation of S&P and IHS Markit's business activities, we've found that the deal raises competition concerns in only a handful of markets involving the supply of certain commodity price assessments in the UK.
"In these markets, we're concerned that the reduction in competition could lead to worse outcomes for customers. If our concerns can be addressed, we will clear this merger.
"The deal is also being reviewed by a number of other competition authorities. While each investigation has been carried out independently, the CMA has engaged closely with other agencies to fully consider the potential impact of the merger."
S&P and IHS now have five working days to submit proposals to address the CMA's concerns or their deal will be referred for an in-depth investigation.
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