OSLO (AFX) - The boards of Nera ASA and Eltek ASA have approved the proposed merger plan between the two groups first announced in May.
Annual cost synergies are expected to be around 120 mln nkr by 2007, in addition to other cost savings in both companies.
Nera said that after the merger is completed, the new company will continue to evaluate further structural changes within the four business areas - Eltek Energy, Nera Networks, Nera SatCom and Nera Telecommunications Ltd.
Divestments will also be considered if this may contribute to value creation for the shareholders.
Nera and Eltek plan to hold extraordinary general meetings on Aug 10 where shareholders will vote on the merger, and the transaction is estimated to be finalised in late October. karin.jensen@afxnews.com kj/jc1 COPYRIGHT Copyright AFX News Limited 2005. All rights reserved. The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News. AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
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