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(RTTNews) – News Corporation (NWS, NWSA, NWSLV) announced Monday that it has agreed to buy the Base Chemicals business from S&P Global and IHS Markit for $ 295 million in cash.
The acquisition agreement was concluded following a request by the UK Competition and Markets Authority IHS Markit to divest Base Chemicals as part of the merger with S&P Global. The acquisition is conditional on the completion of said merger.
News Corp expects to receive an increase in the tax base resulting in an annual deduction over the next 15 years with an estimated tax benefit of approximately $ 46 million on a present value basis. Base Chemicals would be part of Dow Jones Professional Information Business, alongside OPIS, the energy and renewable energy data and information business, also acquired from S&P Global and IHS Markit, as announced in August.
Dow Jones is a division of News Corp. Base Chemicals is known for its price data, information, analysis and forecasting capabilities for the world’s most important commodity chemicals delivered through its market advisory and global analysis services.
In its most recent fiscal year, which ended November 30, 2021, Base Chemicals was expected to generate approximately $ 65 million in revenue. Base Chemicals’ revenues are geographically diverse, with more than 1,700 customers across a wide range of industries and approximately 185 employees.
Gibson, Dunn & Crutcher LLP is acting as legal counsel to News Corp in connection with the transaction.
Shares of News Corporation (NWSA) closed Friday trading at $ 22.33, up $ 0.54 or 2.48% from the previous close.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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