S&P Global Launches Billion-Dollar Buyback Ahead of a Successful Merger

The logo of S&P Global Inc. in bluish grey color is displayed in a building's wall

Founded in 1860 from the merging of two companies, S&P Global Inc. (SPGI: US) is a publicly-traded corporation with roots in New York, United States. The company has been a top credit rating, analytics, and finance solutions provider since.

$SPGI’s stock value has been climbing higher and struck its all-time high of $478.1 on December 27, 2021. At present, it's standing at $379.68. This is a 17.66% decline from the share value at the beginning of 2022, which was $461.1. Even though its value has dived since then, S&P Global has already set off on returning the stock to its glory with new ventures.

Buyback Begins, Merger Ends

On March 2, 2022, S&P Global announced that it had made plans to repurchase nearly $7 billion worth of shares. These agreements were made with Citibank N.A., Goldman Sachs & Co., and Mizuho Markets Americas LLC. S&P Global has high hopes to conclude the buyback within Q3 of 2022. The program was most likely pending from 2021; when S&P was busy with a crucial acquisition.

On February 28, 2022, the company announced the completion of its merger with IHS Markit (INFO: US). IHS Markit is a leading provider of data and information related to finances and the stock market.

S&P’s President and CEO, Douglas L. Peterson, said of the merger, “It is a day to celebrate two great companies coming together. And it is a day to look to tomorrow—to a future filled with huge opportunities for all of us because S&P Global and IHS Markit are stronger together.” Post the merger, S&P Global and IHS Markit intend to raise their data flow, as well provide more resources for authentic data and insights.

Not Coming Slow

This trail of announcements began in March's first trading week, commencing from February 28, 2022, when $SPGI’s price was $377.88. It took a few more hits, before beginning an upward hike from March 1, 2022, when the buyback was first announced. This was an increase of almost 5.99% in five days. On March 4, 2022, the stock was $407.55 per share.

On February 8, 2022, S&P Global published its earnings results for 2021. In the green-lit report, S&P announced a rise in revenue by 11%, up to $8.3 billion, and diluted earnings per share climbed by 29% to $12.51.

In just two months of the new year, S&P Global has made dual, green-lit headlines. Keeping in mind that the buyback scheme moves smoothly, $SPGI’s stock price is out for another 2021-like bullish run.

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