Reuters-Thomson combine to overtake Bloomberg as top financial news provider

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.