The merger will create a company that will provide one-stop telecommunications shopping for corporations, allowing customers to buy local, long distance, data and Internet services from a single carrier.
WorldCom, the fourth largest long distance provider in the United States, is yet another carrier that has made a move to compete via acquisition since recent federal legislation opened up the country's local telephone markets to competition.
MFS Communications had recently completed the acquisition of UUNet Technologies, an Internet service provider, for about $2 billion.
The boards for WorldCom and MFS Communications reportedly approved the transaction last night and an announcement is expected today.
WorldCom reported 1995 revenue of over $3.6 billion. MFS Communications reported revenue of nearly $600 million.
The new company will be larger in terms of annual revenues than MCI Communications and will rival many of the Baby Bells in size.