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Thomson, Reuters agree to sell databases as part of proposed acquisition, DOJ settlement
By Lisa Kerner
Charlotte, N.C., Feb. 19 - The proposed $17 billion acquisition of Reuters Group plc by Thomson Corp. is on track to close the week of April 13 following approvals by the European Commission, U.S. Dept. of Justice and Canadian Competition Bureau.
To preserve competition, Thomson agreed to sell a copy of the Thomson Fundamentals (Worldscope) database and Reuters has agreed to sell a copy of the Reuters Estimates, Reuters Aftermarket Research and Reuters Economics (EcoWin) databases.
The sales, made in connection with the Department of Justice's approval, include source data, training materials and certain contracts, as well as associated employees.
Reuters and Thomson are not required to complete the sales prior to the closing of the transaction but must sell copies of the three financial datasets within 60 days, according to a company news release.
The Department of Justice's Antitrust Division had filed a civil antitrust lawsuit in U.S. District Court in Washington, D.C., to block the proposed acquisition. As part of a proposed settlement, the Antitrust Division must approve the buyer of each set of assets.
Both companies will hold special meetings of stockholders on March 26 to vote on the acquisition.
"Without the asset sales obtained by the department, users of institutional financial data likely would have faced higher prices and reduced innovation as a result of this transaction," assistant attorney general Thomas O. Barnett said in the release.
"The remedy will ensure that participants in the financial markets will continue to receive the benefits of competition," Barnett added.
Stamford, Conn.-based Thomson provides information services in five segments: legal, tax and accounting, financial, scientific and health care.
Reuters is based in London and provides content and transaction services for the financial services marketplace.
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