Mumbai: 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.

Reuters 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.

The 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 would take.

Glocer 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 Professional.

With 34 per cent of the financial information market, it will overtake Bloomberg LP, which has 33 per cent, according to industry sources.

"I would not expect we would need to make any divestitures," Glocer said on a conference call.

Reuters, 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.

Thomson 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 merger.

In 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.

The 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.

Woodbridge 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.