Reuters Group PLC the world''s oldest news network and
Canadian publisher Thomson Corporation have agreed on
terms for a merger to create one of the world''s largest
financial news providers.
Founders Share Company, which has the power to block a
change of ownership, has extended support for the merger
but the deal still needs regulatory clearance and shareholder
approval, the companies said in a joint statement.
cash and stock transaction values Reuters at $17.2 billion.
Reuters chief executive Tom Glocer, who will head the
combined Thomson-Reuters group, said, "We''re creating
a new force in a world of multiple information sources."
He, however, declined to predict how long the process
said Thomson-Reuters would have revenues of more than
$11 billion, 60 per cent from its financial information
and news business, to be called Reuters, and 40 per cent
from its law, tax and science markets, to be called Thomson-Reuters
34 per cent of the financial information market, it will
overtake Bloomberg LP, which has 33 per cent, according
to industry sources.
would not expect we would need to make any divestitures,"
Glocer said on a conference call.
with its strength in real-time data and news and Thomson''s
with a wealth of historical information claim to be a
natural fit across geography and products.
has been building its financial data business for tapping
into the booming global markets. It sold its education
unit for $7.75 billion in cash last week to support the
a letter to Reuters Founders Share Company, unions representing
the company''s staff in the UK, Canada and the US expressed
"deep concern" about the impact a single controlling
shareholder could have on Reuters news values.
Thomson family, which owns 70 per cent of Thomson Corp
via its Woodbridge holding company, will own 53 per cent
of Thomson-Reuters and support the Reuters Trust Principles
of integrity, independence and freedom from bias.
will be granted an exemption to the 15 per cent shareholding
limit set by the Reuters Trust Principles as long as it
remains controlled by the Thomson family.