By Jason Cato, The Pittsburgh Tribune-Review Jul.

Thomson Corp.'s $17.4 billion agreed acquisition of Reuters, the venerable London-based news and financial-services firm, is the culmination of a long dialogue between competitors who saw a lot that was attractive in each others' businesses.

LONDON -- Reuters Group PLC and Thomson Corp. said today they have agreed on terms of a merger that would create one of the world's largest financial news providers.

Reuters agreed on Tuesday to a $17.2 billion takeover by Thomson that would vault the combined entity ahead of Bloomberg to become the world's largest financial data and news provider.

Reuters Group PLC and Thomson Corp. said Tuesday that they have agreed on terms for a merger to create one of the world's largest financial news providers. The cash and shares transaction values Reuters at $17.2 billion.