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Investing.com - S&P Global (NYSE:SPGI) has announced its intention to separate its S&P Global Mobility division, aiming to transform it into an independent publicly traded company. This strategic move is designed to enhance long-term value creation for both entities.
Martina L. Cheung, President and CEO of S&P Global, stated that this decision aligns with the company’s commitment to focus on its core businesses and growth strategy. Post-separation, S&P Global will concentrate on its four main segments: S&P Global Market Intelligence, S&P Global Ratings, S&P Global Commodity Insights, and S&P Dow Jones Indices. The company anticipates that this will simplify operations and promote a more cohesive enterprise strategy.
S&P Global Mobility, with its divisions including CARFAX and automotiveMastermind, caters to the automotive industry’s growing needs for data and technological solutions throughout the vehicle lifecycle. The separation is expected to grant Mobility greater agility to explore growth opportunities, both geographically and in adjacent markets.
In the fiscal year 2024, Mobility reported revenues of $1.6 billion, marking an 8% increase from the previous year. The planned spin-off aims to provide both S&P Global and Mobility with focused management, tailored business models, and strategic priorities, positioning them to capitalize on their respective market opportunities.
The separation is projected to be completed within 12 to 18 months, pending customary legal and regulatory approvals, including a final nod from S&P Global’s Board of Directors and the effectiveness of a Form 10 registration statement with the U.S. Securities and Exchange Commission. The transaction is intended to be tax-free for U.S. federal tax purposes for S&P Global shareholders.
While S&P Global has expressed confidence in the benefits of the separation, it has also cautioned that there is no certainty that the transaction will occur or, if it does, what the final terms or exact timing will be. This announcement is based on a press release statement from S&P Global.
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