Reuters Group PLC and Thomson Corp said on Tuesday that they have agreed on terms for a merger to create one of the world's largest financial news providers.
The cash and shares transaction values Reuters at 8.7 billion pounds (euro 12.7 billion, $ 17.2 billion).
Thomson, formally based in Toronto but with its operational head office in Stamford, Connecticut, would control about 70 per cent of the shares in the new company, Thomson-Reuters PLC. The combined company will be headed by Tom Glocer, 47, who is now chief executive of Reuters.
Reuters trustees, who could have vetoed any takeover, endorsed the deal.
"We believe that the formation of Thomson-Reuters marks a watershed in the global information business, and will underpin the strength, integrity and sustainability of Reuters as a global leader in news and financial information for many years to come," said Pehr Gyllenhammar, chairman of the trustees.
Reuters competes with Thomson and Bloomberg LP in the lucrative field of providing data terminals to the world's major banks and brokerages. Reuters was the market leader for years before steadily losing ground to Bloomberg.
Reuters-Thomson will have roughly the same market share as Bloomberg.