February 19, 2008

Thomson-Reuters £8.7bn merger deal gets green light

The £8.7bn merger deal between Canadian financial media giant Thomson and global news agency Reuters has been given the go-ahead by two separate investigations on either side of the Atlantic.

The US Department of Justice and the European Commission ruled today that Thomson would be allowed to acquire Reuters ending a ten-month wait.

When the new Thomson Reuters company is formed in April it will be one of the largest employers of journalists in the world.

Letters are being sent to shareholders of both companies and both will hold shareholders’ meetings on 26 March, ahead of the deal’s planned closure on 13 April.

Thomson first approached Reuters in May last year with a 691p pre share acquisition offer, which valued Reuters at £8.7bn

Tom Glocer, the current CEO of Reuters who will be CEO of the Thomson Reuters company, said: ‘This is an important step toward completing the transaction and creating what we believe will be the leading provider of information and related applications to businesses and professionals around the world.’

Richard J Harrington, president and CEO of the Thomson Corporation, said: ‘We were pleased to receive regulatory approval on both sides of the Atlantic today. Our constructive discussions with the EC, DOJ and CCB, and their subsequent approvals reflect the thorough understanding the regulators gained of our businesses and the industries we operate in.”