News Corp To Acquire The Base Chemicals Business For $295M Cash
News Corp (NASDAQ: NWS) agreed to acquire the Base Chemicals business for $295 million cash from S&P Global Inc (NYSE: SPGI) and IHS Markit Ltd (NYSE: INFO).
Base Chemicals will become part of Dow Jones's Professional Information Business, alongside OPIS, the energy and renewables data and information business.
The OPIS acquisition (and related assets), also from S&P Global and IHS Markit, was announced in August.
The addition of Base Chemicals and OPIS will further enhance Dow Jones' information services business.
News Corp receives a step-up in tax basis resulting in an annual deduction over the next 15 years with an estimated tax benefit of $46 million.
News Corp held $2.1 billion in cash and equivalents as of September 30.
"From setting price benchmarks for chemicals to tracking renewables and monitoring resource trends that impact most companies, we expect the incomparable intelligence of Base Chemicals, combined with the news and analysis of Dow Jones, will be formidable and lucrative," CEO Robert Thomson said.
Price Action: NWS shares traded higher by 3.86% at $23.42 in the premarket session on the last check Monday.
See more from Benzinga
© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
