Alcatel and Lucent Technologies have received approval from the Committee on Foreign Investment in the United States (CFIUS), under provisions of the Exon-Florio amendment, to proceed with their proposed merger transaction. Alcatel and Lucent submitted a voluntary notice of the merger to CFIUS in August. CFIUS prepared a recommendation on the merger transaction to the President of the United States in the final phase of the approval process and the President has accepted the CFIUS recommendation that he 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.The companies are moving quickly to finalise the transaction and expect to complete the merger on 30 November, which is within the six-to-twelve-month timeframe originally announced 2 April. The transaction offers Lucent shareowners 0.1952 of an ADS (American Depositary Share) representing ordinary shares of Alcatel for every common share of Lucent they currently hold. Upon completion of the merger, Alcatel shareholders will own approximately 60 percent of the combined company and Lucent shareholders will hold around 40 percent.

The combined company will be incorporated in France, with executive offices located in Paris. The North American operations will be based in New Jersey, US, where global Bell Labs will remain headquartered. The combined company intends to form a separate, independent US subsidiary holding certain contracts with US government agencies. The merged company will have revenues of approximately EUR 21 billion and staff of 88,000, with synergies from the merger estimated at EUR 1.4 billion within three years of completion.

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