The boards of Eltek ASA and Nera ASA announced they have agreed to merge to create a Norwegian telecom giant, which will improve the companies’ position in transmission, telecom power supply and mobile satellite communications.

Shareholders of the two companies are expected to approve the transaction in an Aug. 10 vote, and the deal is expected to close in late October.

The two companies had combined revenue of more than 4.7 billion kroner ($747.1 million) in 2005.