United we stand: Reuters and Thomson executives pose for a group photograph after the announcement of the merger of the two companies at the Reuters’ headquarters in London on Tuesday. (Reuters)

London, May 15 (Reuters): Canadian publisher Thomson Corp has agreed to buy Reuters for about £8.7 billion ($17.2 billion) to create the world’s biggest financial news and data group, the companies said on Tuesday.

The takeover has the support of the Reuters Founders Share Company, which has the power to block a change in ownership. However, the deal still needs regulatory clearance and shareholder approval.

Thomson said it would do what was required to win anti-trust clearance. Reuters chief executive Tom Glocer, who will head the combined Thomson-Reuters group, declined to predict how long the process would take but said disposals may not be needed.

“I don’t think we will need to make any divestitures,” he said on a conference call with reporters.

The companies said the combination was a natural fit across geography and products, bringing together Reuters strength in real-time data and news with Thomson’s historical information.

“We’re creating a new force in a world of multiple information sources,” Glocer said. For Thomson, the combination of the two companies adds muscle to its financial services business. For Reuters, it reduces exposure to cyclical financial services.

The Thomson family, which owns 70 per cent of Thomson Corp via its Woodbridge holding company, backs the takeover and some Reuters investors have said the offer of 352-1/2 pence and 0.16 Thomson shares for each Reuters share is fair.

Glocer said Thomson-Reuters will have revenues of more than $11 billion, 60 per cent from its financial information and news business, to be called Reuters, and 40 per cent from its law, tax and science markets, to be called Thomson-Reuters Professional.

With 34 per cent of the financial information market, it will overtake Bloomberg, which has a 33 per cent share, according to industry newsletter, Inside Market Data.

Thomson has been building its financial data business as it looks to tap the global markets. It sold its education unit for $7.75 billion in cash last week.

Woodbridge will own 53 per cent of Thomson-Reuters.

Unions representing the Reuters staff in Britain, Canada and the United States wrote to the Reuters Founders Share Company on Monday expressing “deep concern” about the impact a single controlling shareholder could have on Reuters news values.

Reuters chief operating officer Devin Wenig will become the CEO of the new Reuters while Thomson COO Jim Smith will be the CEO of Thomson-Reuters Professional. Thomson chief financial officer Bob Daleo will be the CFO of Thomson-Reuters.

The companies expect to make over $500 million of annual savings within three years of completion of the deal.