Thomson, Reuters to forge global info leader

By Mark Thompson

LONDON (Reuters) - Canadian publisher Thomson has agreed to buy Reuters for about 8.7 billion pounds, creating the world's leading provider of news and data for professional markets.

Reuters Founders Share Company, which has the power to block a change of ownership at the 156-year-old company, backed the deal but it still needs regulatory clearance and shareholder approval, Thomson and Reuters said in a statement on Tuesday.

The U.S. Department of Justice said it was likely to review the deal. Multinational companies need approval from regulators in Brussels, Washington and elsewhere to complete mergers.

With 34 percent of the financial information market, the new Thomson-Reuters will overtake privately-owned Bloomberg LP on 33 percent, according to industry newsletter Inside Market Data.

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

"When the facts are examined as against the myths about the market, the regulatory authorities will say that not only is this a pro-competitive move, but just the dynamics of the market themselves are making it extremely competitive," Reuters Chairman Niall FitzGerald said in an interview with Reuters.

He said the two companies had been talking for nine months.

At Monday's closing prices, Thomson's cash-and-share offer was worth 692 pence per share. Reuters shares closed up 3.4 percent at 623 pence, a discount of 9.8 percent. Thomson shares stood at 46.10 Canadian dollars, down 26 cents, at 6:21 p.m..