Sirius Satellite Radio Inc. finalized the takeover of the other satellite radio pioneer XM Satellite Radio Holdings Inc. and announced its plans to change the name of the merged company to Sirius XM Radio Inc.

The purchase was all in stock and was estimated to value about $2.76 billion. The company said in a statement released today that it expects the savings to reach $400 million next year and more than $300 million in adjusted earnings before interest, tax, depreciation and amortization.

The two radio satellite pioneers received the merger approval last week from the Federal Communications Commission (F.C.C.) with a vote of 3-2 removing the last formal obstacle of their plans. The process of approval wasn’t easy - the two companies faced some stiff opposition from traditional radio broadcasters and some consumer groups which argued that the merger would lead to a detrimental monopoly.

Under the merger deal, XM investors will receive 4.6 Sirius shares for each XM share. In the meantime, Sirius shares dropped 37 cents, or 16 percent, to $1.88 yesterday in Nasdaq Stock Market trading, while XM fell $1.11, or 12 percent, to $8.17.

However, the biggest question about this issue is whether the product of the two companies would succeed in an era of difficult financing and where people have alternative means of getting radio. The retail sales of satellite radio have dropped since the deal was announced and the weakening nation’s economy may be reluctant to paying $13 a month for radio.