Reuters agrees to $17.2 billion buyout offer from Thomson

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London—Reuters on Tuesday agreed to a $17.2 billion takeover by Canadian media company Thomson.

If the deal meets with shareholder and regulatory approval—which is expected to take several months—the combined entity would surpass Bloomberg as the world's largest provider of financial data.

The combined company, Thomson-Reuters, would be headed by Tom Glocer, who is now CEO of Reuters. He would be responsible for achieving the $500 million in savings the companies are promising to deliver by the third year.

"The companies will be separate legal entities but will be managed and operated as if they were a single economic enterprise," according to a news release from Reuters. "The boards of the two companies will be identical and the combined business will be managed by a single senior executive management team." The combined Thomson Financial unit and Reuters’ financial and media businesses would be called Reuters. Thomson's professional businesses—legal, tax and accounting, scientific and health care—would be branded as Thomson-Reuters Professional.

—Matthew Schwartz

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