Thomson and Reuters have agreed a merger which will see the Canadian news group Thomson pay approximately £8.7 billion for Reuters.
The combined business will be named Thomson-Reuters, with Reuters chief executive Tom Glocer becoming chief executive of the merger company.
The deal has the backing of the Reuters Founders Share Company which has the ability to block any deal which it feels might damage the company’s editorial integrity.
Glocer said: “The combination of these two great businesses will create an exceptional global information company guided by the Reuters Trust Principles.
“It will provide a broader offering to our customers, deliver value to our shareholders and create great opportunities for our people.”
The Thomson family holding company, Woodbridge, will own 53% of the Thomson-Reuters, whilst other Thomson shareholders will own approximately 23% and Reuters shareholders will own approximately 24%.
It is thought that the merger will lead to job cuts across the combined company, with both companies predicting annual cost savings of over £500 million within three years.
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