WASHINGTON, D.C.-The U.S. Department of Justice said last week the scheduled merger between SBC Communications Inc. and Pacific Telesis Group does not violate federal anti-trust laws.
In addition, two other mergers are nearing final approval.
Shareholders of Bell Atlantic Corp. voted overwhelmingly Friday to approve the company’s proposed merger with Nynex Corp. Nynex shareholders approved the merger Nov. 6. The deal is scheduled to close the first quarter of 1997.
The Justice department also approved the purchase of Continental Cablevision by U.S. West Inc., on the condition that Continental sell its 11 percent holding in Teleport Communications Group Inc. New York-based Teleport is a competitive access provider operating at 38 GHz in four major cities, and competes with U S West for business telephone customers.
The SBC-Pacific Telesis deal is expected to close early next year. San Antonio, Texas-based SBC wants to acquire Pacific Telesis for $17 billion. Pacific Telesis’ mobile arm, Pacific Bell Mobile Services, would become a subsidiary of SBC. Pacific Bell Mobile is building personal communications services networks in California.
The proposed SBC merger also has passed Hart-Scott-Rodino Act scrutiny by the Federal Trade Commission.
“The DOJ’s decision will provide the California Public Utilities Commission and the Nevada Public Service Commission with confirmation of the pro-competitive nature of this merger,” said a joint company statement.
“It should also have a positive effect on the Federal Communications Commission’s review of our license transfer,” the companies said. The merger still needs FCC approval.
“We believe the merger is pro-competitive and the new combined company will substantially strengthen competition in California and Nevada,” the companies said.
