Canadian media giant Thomson today agreed to merge with rival Reuters for £8.7 billion after the deal was given backing by a body set up to protect Reuters' editorial independence.

The groups are set to join forces under the name Thomson-Reuters after the merger received the all-clear from the Reuters Founders Share Company, which controls a special share in the media group.

Thomson has agreed to pay 691p per share for Reuters in a deal which is set to create a "global leader" in financial news and information.