News Corp adds Base Chemicals to information mix in $410m acquisition

News Corp has agreed to buy the Base Chemicals business from S&P Global and IHS Markit for $US295 million ($410m). It will provide price data, insights, analysis and forecasting capabilities in its sector for Dow Jones.

News Corp chief executive Robert Thomson. Picture: AFP​

News Corp has agreed to buy the Base Chemicals business from S&P Global and IHS Markit.

The publisher will pay $US295m ($410m) cash for Base Chemicals, which will be part of Dow Jones’ Professional Information Business.

It will sit alongside OPIS, the energy and renewables data and information business which News had previously agreed to buy from S&P Global and IHS Markit.

With its strong growth, mostly digital and recurring revenue base, high margins and modest capex requirements, Base Chemicals supplies price data, insights, analysis and forecasting capabilities on the world’s main base chemicals through its leading Market Advisory and World Analysis services.

Its analytics and forecasting is expected to enhance Dow Jones’ data, price and news solutions, and the Dow Jones’s expertise in news, research and events is expected to benefit Base Chemicals.

“We are delighted with the opportunistic acquisition of Base Chemicals, which complements our purchase of OPIS, and will certainly strengthen the highly profitable and decidedly digital Professional Information Business at Dow Jones,” News Corp chief executive Robert Thomson said.

“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.”

News Corp — also publisher of The Australian — saw significant growth potential for Base Chemicals, particularly as demand changed and new products emerged as the world transitions to renewable energy sources in the years ahead.

Base Chemicals has more than 1700 customers in a range of industries, and about 185 employees.

In its fiscal year to November 30, 2021, it was expected to generate about $US65m in revenues.

Base Chemicals’ total addressable market was expected to increase, with new demand anticipated for pricing data and insights and analysis resulting from the transition to renewables and related structural changes in the broader chemical industry.

The agreement was reached following the UK Competition and Markets Authority request that IHS Markit divest Base Chemicals as part of the S&P Global and IHS Markit merger plans.

News Corp’s acquisition of Base Chemicals is subject to customary closing conditions, including regulatory approvals and the completion of the S&P Global and HIS Markit merger.