Two of the world's largest information companies, Thomson and Reuters, have confirmed that they are in discussions to combine the two businesses.
A statement of intent resulted from "market activity and attendant speculation" generated by rumours of the talks between the two.
The proposed deal is said to be a "large and complex transaction" but both parties have confirmed that there cannot be any assurance that an agreement will be reached between the media giants.
"Both boards believe there is a powerful and compelling logic for the combination which would create a global leader in the business-to-business information markets," the joint statement read.
"This transaction would also create enhanced value for shareholders through the delivery of in excess of $500 million (£250 million) of annual synergies expected to be achieved within three years."
The combined group would be named Thomson-Reuters and Thomson president and chief executive Richard J Harrington, 60, would retire at the successful completion of the transaction.
Reuters chief executive Tom Glocer, 47, would become head of the combined company.
Reuters and Thomson added that a further announcement regarding the talks will be made in due course.
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