Nuremberg, Germany  - In what was billed as merger of equals, two European market-information companies, GfK and Turner Nelson Sofres (TNS), said Tuesday they would form the second-biggest company in an industry dominated by Nielsen of the United States.

They had been in merger talks for more than a month. During that time, TNS rejected a separate takeover bid from a big group, WPP.

The merged group is to gain extended coverage in the fast growing markets of Asia, Latin America and Eastern Europe.

Klaus Wuebbenhorst, chief executive of GfK, based in the German city of Nuremberg, said the two were a good fit and had cooperated for a long time. GfK compiles Germany's monthly consumer confidence surveys.

The companies survey ordinary consumers and TV viewers to discover what products and media they prefer, and sells this information to companies that need to know how well they are doing in a market.

The merger takes effect in the fourth quarter of this year. The new company, GfK-TNS plc, would have annual turnover of 2.7 billion euros (4.2 billion dollars), according to TNS chief executive David Lowden in London. Its head office will be in London and Lowden will be chief executive.

Their bigger rival Nielsen Co has annual sales equivalent to 3.2 billion euros.

A statement said GfK and TNS employ 24,000 people in 111 nations and have the world's most comprehensive consumer surveys.

GfK shareholders are to be offered British shares in a swap, so that they end up owning about 50 per cent of the new business. A German society, GfK Nuernberg Verein, will be the principal shareholder with 28.7 per cent of the GfK-TNS stock. (dpa)