Thomson to buy Reuters for $17 billion

Canadian publisher Thomson has agreed to buy Reuters for $17.2 billion (£8.7 billion) to create the world's biggest financial news and data firm, the companies said on Tuesday.

The takeover has the support of the Reuters Founders Share Company, which has the power to block a change of ownership, but the deal still needs regulatory clearance and shareholder approval, the companies said in a joint statement.

Thomson said it would do what was required to win anti-trust clearance. Reuters Chief Executive Tom Glocer, who will head the combined Thomson-Reuters company, declined to predict how long the process would take but said disposals may not be needed.

The Thomson family, which owns 70 percent of Thomson Corp via its Woodbridge holding company, backs the takeover and some Reuters investors have said the offer of 352-1/2 pence and 0.16 Thomson shares for each Reuters share is fair.

Unions representing Reuters staff in Britain, Canada and the United States wrote to the Reuters Founders Share Company on Monday expressing "deep concern" about the impact a single controlling shareholder could have on Reuters news values.

Reuters Chief Operating Officer Devin Wenig will become CEO of the new Reuters while Thomson COO Jim Smith will be CEO of Thomson-Reuters Professional. Thomson Chief Financial Officer Bob Daleo will be CFO of Thomson-Reuters.

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