News Corp has agreed to buy Oil Price Information Service, a leading energy data and analytics specialist, from IHS Markit in a $1.15 billion all-cash deal.
Last year S&P Global agreed to buy IHS Markit for $44 billion, creating a financial information powerhouse. The planned combination prompted the two companies to explore a sale of some assets after discussions with regulators.
The deal with News Corp, which owns publications including The Times, The Sunday Times, The Sun and The Wall Street Journal, will add to its growing portfolio of investment-focused businesses.
The transaction will generate an estimated tax benefit of $180 million for News Corp, the company said.
Established in 1977, Oil Price Information Service provides pricing data, news and analysis covering the oil, natural gas liquids and biofuels industries. The group, which has been building its output around renewables and carbon pricing, has about 400 staff. It is based in Rockville, Maryland, with offices in countries including the UK and Mexico.
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It will become a part of News Corp’s Dow Jones professional information business following the deal, which is subject to regulatory approvals and the completion of the S&P Global and IHS Markit merger.
Robert Thomson, chief executive of News Corp, said: “Oil Price Information Service will be the cornerstone for a rising commodities, energy and renewables digital business that we are convinced will have a positive impact on Dow Jones and News Corp. We certainly believe Oil Price Information Service and Dow Jones will be more than the sum of their valuable parts.
“Dow Jones is ideally positioned to accelerate growth at Oil Price Information Service while Oil Price Information Service will be a powerful pillar, alongside Risk & Compliance, in the fast growing Dow Jones Professional Information Business.”
Shares in News Corp rose 18 cents, or 0.7 per cent, to $24.81 following the announcement, before closing at $24.74. It is due to publish annual results on Thursday.
Almar Latour, chief executive of Dow Jones, described OPIS as a “highly profitable, growing business that can expand even faster as part of Dow Jones.”
