SANDVIK, DIAMANT BOART FINALISE DRILLS MERGER Sweden's Sandvik AB <SVIK.ST> and Diamant Boart SA of Belgium, in which Societe Generale de Belgique <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.