Thomson Agrees to Buy Reuters

Posted on May 15, 2007

Reuters is reporting that Thomson Corp., a Canadian publishing company, has agreed to purchase Reuters for 8.7 billion pounds ($17.2 billion U.S.). The deal will create the world's biggest financial news and data group according to Thomson and Reuters.

The deal has the support of the Reuters Founders Share Company but still needs regulatory clearance, they said in a joint statement.
The Founders Share Company could have blocked a takeover if it thought Reuters editorial independence was at risk.
"The combination of these two great businesses will create an exceptional global information company guided by the Reuters Trust Principles," Reuters Chief Executive Tom Glocer said in the statement.
The Thomson family, which owns 70 percent of the Toronto-based group via its Woodbridge holding company, backs the takeover and several Reuters investors have said they believe the offer of 352-1/2 pence and 0.16 Thomson shares for each Reuters share is fair.

The Reuters news story says the combined Thomson-Reuters company will have 49,000 employees. Thomson publishes business, education and professional information as well as financial news. The news and financial products of the combined company will be called Reuters while the other products will be renamed Thomson-Reuters Professional. Reuters Group Chief Executive Tom Glocer will become CEO of the new Thomson-Reuters company.