French telecommunications firm Alcatel and US company Lucent Technologies have confirmed the timing of their merger, which will create a firm with $25bn annual revenues.
The firms have announced they are on track to complete their merger, first announced in April, by the end of the year.
Following the April annoucement, industry analysts speculated that the move by Alcatel and Lucent heralded a period of consolidation in the telecoms market.
Serge Tchuruk, who will become non-executive chairman of the combined company, said: "The pre-intergration work has progressed very satisfactorily and clearly confirms the high value of the share holders."
The future CEO of the company, and currently the CEO and chairman of Lucent, Patricia Russo said: "The merger will create a world class team that will deliver the best of both companies to customers around the world, and will create enhanced value for shareholders."
After the merger, the combined firm will have 850 offices worldwide. It plans to improve the utilisation of existing facilities and cut back on excess space; save on procurement costs; and converge platforms.
Along with a reduction in workforce, the firm expects savings of around €1.4bn over the space of three years.
Russo said; "We are approaching this merger excited about the opportunity ahead of us. On day one, the combined company will have a strong financial base, a leading market position, an enhanced global footprint and an experianced international leadership team."
Alcatel
Lucent