Reuters and Canada’s Thomson have agreed terms for a 12.7 billion euro merger that will create the world’s largest financial news and information group. Reuters trustees, who could have blocked a takeover, have endorsed the deal.
The announcement was made by Thomson’s Chief Executive Richard Harrington. He said: “Thomson and Reuters, we know, are both customer focused; combining them will enable us to serve our customers better, especially in this highly competitive and highly dynamic marketplace. There has been a lot of talk about synergies, but the story is about growth, it’s not about consolidation, it’s the opportunities that both companies will have together, going forward.”
Thomson and Reuters combined will control 34% of the business news market, overtaking Bloomberg. The next biggest player is Dow Jones Newswires with 19%, according to industry newsletter Inside Market Data. The new group will have annual revenues of just over eight billion euros and employ almost 49,000 people. The companies expect to make at least 370 million euros of annual savings within three years of completing the deal.