Level 3 Communications (Nasdaq: LVLT) cleared a major hurdle to complete its acquisition of competitor Global Crossing (Nasdaq: GLBC) as the U.S. Department of Justice has approved the deal.
Effective immediately, the DOJ's clearance completes the process under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (HSR). In addition, the FCC said it had issued an order to approve the transaction.
Previously, the DOJ along with the FBI and the Dept. of Homeland Security had launched an investigation over concerns that the transaction could have some national security, law enforcement, and public safety issues.
At the same time, Level 3's main competitor XO Communications (OTC BB: XOHO) also filed comments with the FCC arguing that the combined company would create a "global colossus" that could create higher prices and degrade service quality.
But with these approvals in hand, Level 3 said it will close the deal as early as next week.
- see the release
Level 3 and Global Crossing get stockholders' blessing for merger
Level 3 revenues rise to $932M, but sees wider losses
Level 3 maintains it will complete Global Crossing deal despite DOJ investigation, XO protest
Jeff Storey, Level 3 Communications: Wireline's most powerful people
Level 3 argues to FCC that Global Crossing deal will create a stronger competitor