EU Takes Closer Look at Pending Thomson/Reuters Deal

The European Union said Monday that the proposed £8.7 billion ($17.7 billion) purchase by Thomson Corp. of Reuters Group plc could have anti-competitive implications, and is placing the deal under closer scrutiny. The European Commission, which investigates antitrust issues for the EU, said it requires more time to evaluate the acquisition because it has "serious doubts as regards adverse effects on competition in several markets of the financial information sector." The Commission will issue a ruling on the transaction by February 25, 2008. The U.S. Justice Department will make its own decision on the deal by January 15. The purchase of Reuters would triple Thomson's share of the financial data market to 34% and would leave privately owned Bloomberg LP as the combined company's sole competitor. Thomson also owns the Westlaw legal database and TradeWeb bond-trading network. "Today's developments bring clarity and transparency to the regulatory timetables on both sides of the Atlantic," said Reuters CEO Tom Glocer.

Sources: Bloomberg, MarketWatch, AP
Commentary: Reuters Agrees To Merge With Thomson; Regulatory Scrutiny To Follow • Deutsche Bank: Thomson-Reuters Combo Would Have Leakage, Be Anti-Trust Risk
Stocks/ETFs to watch: TOC, RTRSY. Competitors: NWS, FDS, NYT

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