The proposed merger of Alcatel and Lucent Technologies passed a key regulatory hurdle after the Committee on Foreign Investment in the United States (CFIUS) approved the deal under the provisions of the Exon-Florio amendment.
The green light comes after Alcatel and Lucent submitted a voluntary notice of the merger to the CFIUS in August 2006.
Both companies said that the CFIUS prepared a recommendation on the merger transaction to the president of the US in the final phase of the approval process.
The president accepted the CFIUS recommendation that he should not suspend or prohibit the proposed merger transaction, provided that, in time periods specified, the companies execute a National Security Agreement and Special Security Agreement to which they have agreed with US government agencies.
Alcatel and Lucent said they are "moving quickly" to finalise the transaction and expect to complete the merger on 30 November, which is within the six- to 12-month timeframe originally announced on 2 April.
Alcatel Lucent merger passes key hurdle
By Robert Jaques on Nov 22, 2006 10:48AM