Alcatel and Lucent move closer

Alcatel and Lucent moved another step towards their proposed merger Tuesday as the Committee on Foreign investment in the US (CFIUS) gave its blessing to the deal under the provisions of the Exon-Florio amendment.

The companies gave notice of the merger to the CFIUS in August.

The companies said the CFIUS prepared a recommendation on the merger transaction to George Bush in the final phase of the approval process.

The president accepted the CFIUS recommendation and committed to not suspend or prohibit the proposed merger transaction, provided both firms execute a National Security Agreement and Special Security Agreement to which they have agreed with US government agencies.

The companies expect the merger to complete by the end of November.