Thomson Reuters (TSX, NYSE: TRI) said it and U.S. private equity firm Blackstone Group are in discussions to sell Refinitiv to the London Stock Exchange Group plc (LSEG) for about US$27 billion, confirming an earlier report.
It is expected the deal would result in Thomson Reuters holding an about 15 percent stake in LSEG.
Refinitiv, a London, U.K.-based provider of financial markets data and infrastructure, emerged last year with the acquisition of Thomson Reuters’ financial and risk unit by a group led by Blackstone. Canada Pension Plan Investment Board was among the investors.
Thomson Reuters is controlled by Canada’s Thomson family.
Thomson Reuters and Blackstone in Discussions with London Stock Exchange Group Regarding the Refinitiv Business
TORONTO, July 26, 2019 – Thomson Reuters (TSX/NYSE: TRI) confirms that it and private equity funds affiliated with Blackstone are in discussions related to a possible acquisition of Refinitiv by the London Stock Exchange Group plc (LSEG) for a total enterprise value of approximately US$27 billion. New LSEG shares are contemplated to be issued as consideration in full for Refinitiv’s equity value, after adjusting for Refinitiv’s net debt and other adjustments.
The parties anticipate that the transaction would result in Thomson Reuters holding an approximate 15% stake in LSEG if completed.
The Refinitiv business is currently 55% owned by private equity funds managed by Blackstone and 45% by Thomson Reuters. Reuters News 30-year agreement signed last year with Refinitiv will continue if ownership of Refinitiv changes.
There can be no certainty that these discussions will progress or that a transaction will be forthcoming.
Any further announcements will be made as appropriate.
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