Blackstone in talks with Thomson Reuters over $20bn financials unit

Blackstone Group, the US private equity giant, is in advanced discussions to buy part of Thomson Reuters.

According to reports, Blackstone is looking to take a 55% stake in Thomson Reuters’ $20bn financial and risk business, which supplies investment groups and banks with news, data and analytics. The unit is responsible for more than half of Thomson Reuters’ annual income.

Under the terms being discussed, it is thought that Thomson Reuters would keep the remaining 45% stake in the finance and risk unit and continuing to have full ownership of the Reuters news arm and the legal, tax and accounting business.

The finance and risk arm is currently valued at around $20bn, consisting of $7bn in equity and $13bn in debt, according to Reuters.

Talks are understood to be at an advanced stage, with the board believed to be meeting Tuesday to discuss the offer.

Thomson Reuters was formed 10 years ago after Canadian group Thomson acquired British media firm Reuters for £8.7bn.

Thomson Reuters now trades in New York and Toronto with a market value of around $31bn. The Thomson family controls around 63% of the stock through its Woodbridge Co vehicle.

Thomson Reuters has confirmed the discussions but has not commented beyond that.