UCG cancels sale of OPIS to McGraw-Hill's Platts unit.
Faced with opposition from its customers, United Communications Group (UCG) cancelled plans to sell its Oil Price Information Service (OPIS) division to Platts, a division of McGraw-Hill Corp.
OPIS is a leading provider of news, pricing and software for buyers and sellers of petroleum products. It was one of the early units of UCG, and some has said it provided the foundation for the company's early growth.
Cancellation of the deal is something unprecedented in the newsletter business: Never before have customers objected to the proposed sale of a publishing enterprise so strongly that the agreement was cancelled. But that's exactly what happened here, said Brian Crotty, OPIS CEO.
"Since the initial announcement, our customers have informed us of their opposition to this combination," Crotty said. "In light of the concerns expressed by our customers, we have notified Platts that we are exercising our right to terminate the acquisition agreement," Crotty said.
"We look forward to continuing to provide our customers with timely pricing data, comprehensive industry news, respected methodologies, and world-class customer service, as we have for over 30 years," Crotty added.
Founded in 1977, OPIS is a leader in petroleum, natural gas liquids, refinery feedstock and bio-fuels news and pricing. OPIS is the only information provider that links spot, rack and retail gasoline and diesel prices throughout the U.S. supply chain. OPIS maintains a database of more than five billion historical spot, rack and retail prices and delivers most of its news and pricing information to customers electronically.