U.S. Clears $11.8 Billion Alcatel-Lucent Merger

The United States government approved French telecom giant Alcatel's $11.8 billion acquisition of Lucent Technologies on Friday, clearing the path for one of the largest mergers in the global telecommunications industry.

President George W. Bush backed the deal after a 75-day review by the Committee on Foreign Investment, a 12-member interagency panel tasked with assessing national security implications. His approval came with the condition that both companies honor existing security agreements described as wide-ranging and stringent.

With that final hurdle cleared, Alcatel and Lucent announced they anticipate completing the transaction by 30 November. Paris-based Alcatel originally agreed to purchase New Jersey-based Lucent, the largest telephone equipment maker in the United States, in April, amid a wave of consolidation sweeping the telecom sector.

The combined company is projected to eliminate 9,000 positions across both firms while generating $1.7 billion in savings, according to Bloomberg News.

Historical summary. TurkishPress restated this wire report, first published in November 2006, in its own words.