IHS Markit, CME Get UK Antitrust Agency's Nod for Joint Venture
- The two will combine their post-trade services.
The United Kingdom’s Competition and Markets Authority (CMA) announced on Tuesday that it has cleared the anticipated joint venture of IHS Markit (NYSE: INFO) and CME Group (NASDAQ: CME). The two companies are combining their post-trade services.
“The CMA investigated and cleared the anticipated joint venture between IHS Markit Ltd’s MarkitSERV Business and CME Global Inc.’s Optimization Business,” the UK antitrust regulator stated.
The two financial industry giants announced in January that they want to combine parts of their businesses and form a joint venture. It will consist of IHS Markit’s over-the-counter (OTC) derivatives and foreign currency trade processing business (MarkitSERV) and of CME Group’s OTC derivatives optimization businesses, which it operates as Traiana, TriOptima and Reset.
Not an Antitrust Concern
The CMA opened an inquiry against the proposals of the joint venture in June over several market-related concerns.
“The CMA is considering whether it is or may be the case that this transaction, if carried into effect, will result in the creation of a relevant Merger Merger A merger is defined as the absorption of the interest of another. It can include an estate, or contract. There are no specific rules or formats for a union in general. It is a method of combining two or more organizations, business concerns, or other related interests. The terms of a merger are usually by agreement of the parties involved. In the financial sphere, merger refers to an agreement between two or more companies or corporations, public and private, to merge into one entity. Mergers d A merger is defined as the absorption of the interest of another. It can include an estate, or contract. There are no specific rules or formats for a union in general. It is a method of combining two or more organizations, business concerns, or other related interests. The terms of a merger are usually by agreement of the parties involved. In the financial sphere, merger refers to an agreement between two or more companies or corporations, public and private, to merge into one entity. Mergers d Read this Term situation… and, if so, whether the creation of that situation may be expected to result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services,” the CMA wrote earlier.
The latest decision came less than a week after the European Commission approved the formation of the joint venture by the two companies. “The Commission’s investigation showed that any strategy to foreclose competitors following the transaction would be unlikely,” the ESMA ESMA European Securities and Markets Authority (ESMA) is an independent Authority of the European Union that is responsible for the safety, security, and stability of the European Unions’ financial system and is charged with protecting the public. The European supervisory authority for the securities sector, ESMA was established on 1 January 2011. The European Securities and Markets Authority is an independent EU authority based in Paris. It aims to contribute to the effectiveness and stability of t European Securities and Markets Authority (ESMA) is an independent Authority of the European Union that is responsible for the safety, security, and stability of the European Unions’ financial system and is charged with protecting the public. The European supervisory authority for the securities sector, ESMA was established on 1 January 2011. The European Securities and Markets Authority is an independent EU authority based in Paris. It aims to contribute to the effectiveness and stability of t Read this Term stated.
Under the already agreed terms, IHS Markit needs to make a payment of $113 million to CME Group at the closure of the deal that will give both companies equal ownership and shared control of the joint venture.
The United Kingdom’s Competition and Markets Authority (CMA) announced on Tuesday that it has cleared the anticipated joint venture of IHS Markit (NYSE: INFO) and CME Group (NASDAQ: CME). The two companies are combining their post-trade services.
“The CMA investigated and cleared the anticipated joint venture between IHS Markit Ltd’s MarkitSERV Business and CME Global Inc.’s Optimization Business,” the UK antitrust regulator stated.
The two financial industry giants announced in January that they want to combine parts of their businesses and form a joint venture. It will consist of IHS Markit’s over-the-counter (OTC) derivatives and foreign currency trade processing business (MarkitSERV) and of CME Group’s OTC derivatives optimization businesses, which it operates as Traiana, TriOptima and Reset.
Not an Antitrust Concern
The CMA opened an inquiry against the proposals of the joint venture in June over several market-related concerns.
“The CMA is considering whether it is or may be the case that this transaction, if carried into effect, will result in the creation of a relevant Merger Merger A merger is defined as the absorption of the interest of another. It can include an estate, or contract. There are no specific rules or formats for a union in general. It is a method of combining two or more organizations, business concerns, or other related interests. The terms of a merger are usually by agreement of the parties involved. In the financial sphere, merger refers to an agreement between two or more companies or corporations, public and private, to merge into one entity. Mergers d A merger is defined as the absorption of the interest of another. It can include an estate, or contract. There are no specific rules or formats for a union in general. It is a method of combining two or more organizations, business concerns, or other related interests. The terms of a merger are usually by agreement of the parties involved. In the financial sphere, merger refers to an agreement between two or more companies or corporations, public and private, to merge into one entity. Mergers d Read this Term situation… and, if so, whether the creation of that situation may be expected to result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services,” the CMA wrote earlier.
The latest decision came less than a week after the European Commission approved the formation of the joint venture by the two companies. “The Commission’s investigation showed that any strategy to foreclose competitors following the transaction would be unlikely,” the ESMA ESMA European Securities and Markets Authority (ESMA) is an independent Authority of the European Union that is responsible for the safety, security, and stability of the European Unions’ financial system and is charged with protecting the public. The European supervisory authority for the securities sector, ESMA was established on 1 January 2011. The European Securities and Markets Authority is an independent EU authority based in Paris. It aims to contribute to the effectiveness and stability of t European Securities and Markets Authority (ESMA) is an independent Authority of the European Union that is responsible for the safety, security, and stability of the European Unions’ financial system and is charged with protecting the public. The European supervisory authority for the securities sector, ESMA was established on 1 January 2011. The European Securities and Markets Authority is an independent EU authority based in Paris. It aims to contribute to the effectiveness and stability of t Read this Term stated.
Under the already agreed terms, IHS Markit needs to make a payment of $113 million to CME Group at the closure of the deal that will give both companies equal ownership and shared control of the joint venture.