SANDVIK, DIAMANT BOART FINALISE DRILLS MERGER
  Sweden's Sandvik AB &lt;SVIK.ST> and
  Diamant Boart SA of Belgium, in which Societe Generale de
  Belgique &lt;BELB.BR> holds an indirect 52 pct stake, have
  finalised negotiations on merging oil and gas drilling tool
  activities, officials of both companies said.
      Staffan Paues, President of the new Brussels-based joint
  venture company Diamant Boart Stratabit SA (DBS), told a news
  conference that the merged firm would be able to offer products
  for all types of drilling operations.
      He said there were already signs that a slow recovery from
  recession was under way in the oil and gas industries.
      "Stability in oil prices should lead to renewed investment"
  Paues said.
      DBS, which Paues said began operations today, brings
  together Sandvik's wholly-owned U.S. Subsidiary Strata Bit Corp
  of Houston and Diamant Boart's petroleum activities in Europe,
  North America, the Middle and Far East and Africa.
      Paues said the merger was a direct result of the sharp fall
  in oil prices 18 months ago which led oil firms to cut back
  exploration activities. Officials said the complementary
  character of the two firms' operations was a further reason.
  

