WASHINGTON, Nov. 12 (Reuters) – Trade news provider S&P Global Inc (SPGI.N) and IHS Markit Ltd (INFO.N) have obtained U.S. antitrust approval for their proposed merger, provided they ‘He sells some companies and removes a non-compete deal with GasBuddy, the Justice Department said in a statement.
The $ 44 billion deal was originally announced in November 2020.
To gain approval for the deal, the companies agreed to sell three of IHS Markit’s pricing agency (PRA) businesses. The ministry said the companies are: Oil Price Information Services (OPIS); Coal, Metals and Mines (CMM); and PetrochemWire (PCW).
The companies will be bought by News Corp (NWSA.O) in a $ 1.15 billion deal reached in August. Read more
In a court filing, the Justice Department said that S&P Global and IHS are a small number of companies that provide PRA services and “compete vigorously in each of the affected markets, resulting in lower prices and increased quality and innovation for PRA customers ”.
One of them, OPIS, collects and sells information related to retail gasoline prices in the United States. GasBuddy has been one of OPIS’s primary data sources since 2009. Since 2016, OPIS has held the exclusive rights to GasBuddy data for 20 years.
As a result of the deal, GasBuddy, which uses crowdsourced information to help people find deals on retail gasoline, was barred from creating a service to compete with OPIS, the department said.
“The divestitures will preserve competition for PRA (Price Information Agency) services, which are essential to the proper functioning of commodity markets and promote transparency in financial markets,” said Richard Powers, Acting Head of the Department of Justice’s antitrust division, in a statement. .
GasBuddy’s parent company, PDI, praised the DOJ regulation and said, “Once the waiver is approved, we look forward to providing oil traders and wholesalers with a compelling pricing solution, thanks to the million retail fuel price quotes provided by GasBuddies daily. ”
The deal got antitrust approval from the EU in October, with some of the same conditions. Read more
Reporting by Diane Bartz; Additional reporting by David Shepardson; Editing by Diane Craft, Chris Reese, Jonathan Oatis and Daniel Wallis
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