London - Canada's Thomson Corp. has agreed to acquire global news agency Reuters for about $17.2 billion, creating a company that will replace Bloomberg as the world's largest provider of financial news and information.

The deal won approval from the Reuters Founders Share Company, a group set up to safeguard editorial independence that had the power to block the acquisition, but must still gain shareholder and regulatory approvals.

"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," said Reuters chairman Niall FitzGerald.

The new company will be called Reuters, and see expected revenues of more than $11 billion.

Neither Thomson nor Reuters would comment to a Reuters reporter on the possibility of layoffs after the deal closes.

Related Links:
http://tinyurl.com/35ydcq (Reuters)

http://www.thomson.com