Canadian publisher Thomson has agreed to by news and financial group Reuters in a deal worth some 17.23 billion dollars, which will create the world's biggest financial news and data group, the companies said on Tuesday.

According to a joint statement released by the two companies, the merger is backed by the Reuters Founders Share Company, which could have blocked the deal if it thought Reuters editorial independence was at risk.

"We believe that the formation of Thomson-Reuters marks a watershed in the global information business, and will underpin the strength, integrity and sustainability of Reuters as a global leader in news and financial information for many years to come," said Pehr Gyllenhammar, chairman of the Reuters trustees.

Woodbridge, Thomson’s parent company which owns a 70 percent stake in Thomson, has also agreed to go ahead with the transaction, the statement added.

"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," said Richard J. Harrington, Thomson's president and chief executive.

The agreement is pending regulatory clearance before it can go ahead.

According to the terms of the agreement, shareholders of Reuters will receive 352.5 pence (698.7 cents) in cash and 0.16 Thomson share for each Reuters share. The offer is valued at approximately 691 pence for each Reuters share, based on yesterday's closing price for Thomson on the Toronto Stock Exchange.

"The boards of Thomson and Reuters believe there is a natural fit and compelling logic in creating a global leader in electronic information services, trading systems and news," the joint statement said.

The combined Thomson-Reuters Corporation business will go by the name Reuters and will function with a dual-listed company structure, which means that each company will be a separate legal entity but will be operated as if they were a single economic enterprise.

"The companies will be separate legal entities but will be managed and operated as if they were a single economic enterprise," the statement said. "The boards of the two companies will be identical and the combined business will be managed by a single senior executive management team."

As a result of the deal, the new company would own some 34 percent of the business information market, just ahead of US rival Bloomberg, with 33 percent.