Boards Of Thomson And Reuters Agree To Combine Two Groups, Recommend Transaction To Shareholders

The boards of Thomson and Reuters have agreed to combine the two groups and are to recommend the transaction to their shareholders
By None

The boards of Thomson and Reuters have agreed to combine the two groups and are to recommend the transaction to their shareholders. The new group will be named Thomson-Reuters Corporation.

Woodbridge, the Thomson family holding company that controls approximately 70 percent of the company, has irrevocably committed to vote in favour of the transaction. The Reuters Founders Share Company, which controls a special share in Reuters, has resolved to support it.

The combination will be effected through a dual listed company structure; the companies will be separate legal entities but will be managed and operated as if they were a single economic enterprise.

The companies’ economic interests will be aligned and they will pursue common objectives, they said in a statement. The boards of the two companies will be identical and the combined business will be managed by a single senior executive management team.

“This is an historic day for Reuters and represents an important chapter in the development of our company and the commitment to our heritage,” said Niall FitzGerald, chairman of Reuters. “The shared expertise and complementary strengths of these two companies makes for a strategically compelling and financially attractive combination. I am especially proud that Reuters journalism will continue to be governed by the powerful Reuter Trust Principles of independence, integrity and freedom from bias.”

Thomson President and CEO Richard J. Harrington added: “This combination marks a strategic milestone for both companies. For Thomson, it is a defining moment in our journey to become the information provider of choice for the world’s business and professional markets. Thomson has a long history of creating value for all its stakeholders and this Transaction builds on that tradition.”

See “Thomson Confirms $17 Billion Bid For Reuters”.

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