The European Commission has opened an investigation into the proposed takeover of Reuters by Thomson, the Canadian financial information company.
In a statement, the Commission said: “The initial market investigation indicates that the proposed merger would raise serious doubts as regards adverse effects on competition in several markets of the financial information sector.”
The planned merger, worth approximately £8.7 billion, would see the combined business – named Thomson-Reuters – become the leading news and data provider for professional markets.
The two companies have said that they will work with the Commission to resolve any problematic issues.
The European Commission now has until February 25 to decide if the proposed deal would significantly impede competition.
It is understood that the merger will lead to job cuts across the combined company, with both Reuters and Thomson predicting annual cost savings of over £500 million within three years (see Thomson And Reuters Agree Merger).
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