Proposed Merger between Thomson Corporation and Reuters Group PLC

Reference: 400/007/07
Notifying Parties: The Thomson Corporation and Reuters Group PLC
Notifying Date: 8 October 2007
Summary of transaction:


1. The Applicants

The Thomson Corporation
Reuters Group PLC

2. Description of the merger

Thomson and Reuters, both being global providers of information products agreed to combine through a dual listed company structure pursuant to the Implementation Agreement dated 15 May 2007 entered into between Thomson, Reuters, The Woodbridge Company Limited and Thomson-Reuters Limited.

Thomson and Reuters complement each other in terms of the nature of their respective businesses, and the geographical regions in which they operate. Further, the combination of Thomson and Reuters’ technological capabilities and resources will allow the combined enterprise to pursue innovative product development opportunities and benefit from the continuing shift towards electronic delivery of information to professional and financial customers, enhancing the quality and competitiveness of its product offering.

The reportable markets include Fixed Income, Institutional Equities, Wealth Management, Investment Management, Investment Banking, and Corporates user segments. In these reportable markets, the combined shares of Thomson and Reuters are modest. Given the competitive constraints in the reportable markets, the merger is unlikely to bring about a substantial lessening of competition. In fact, the merger will allow the merger parties to reap efficiencies and bring about pro-competitive benefits to the markets.

3. Relevant good(s) or service(s) involved

The relevant good/service involved is the provision of financial information products based on the individual needs of the different user group segments. The key components of financial information products include market data, real time information, decision support tools, historical and reference data and news and analysis.

Decision: The proposed merger, if carried into effect, will not infringe the section 54 prohibition.
23 May 2008
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