Level 3 To Finalize Global Crossing Deal This Week

acquisition of Global Crossing Ltd

The Justice Department and the FCC approved the deal late last week, Bloomfield, Colo.-based Level 3 said in a statement Friday. The approval came after several months of investigation by the DOJ over antitrust and national security concerns.

Tier 1 service provider and Level 3 competitor, XO Communications, had filed comments with the FCC opposing the acquisition in July, saying the merger would create a “global colossus” that would increase prices while decreasing quality.

Level 3 first announced it would acquire Florham, N.J.-based Global Crossing in April, in an all-stock and debt assumption deal valued at $3 billion. Shareholders of both companies voted to approve the merger last month.

The combination of Level 3 and Global Crossing will create a global networking powerhouse with fiber optic networks in North America, Europe, Latin America and Asia, capable of reaching end users in over 70 countries.

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Once fully integrated, the merged companies will offer a vast portfolio of IP and data solutions, content delivery, data center, collocation, and voice services, as well as managed services, collaboration and inter-continental VPN capabilities geared toward the global enterprise market.