More than two years after Sirius Satellite Radio and XM Radio merged in the United States to form Sirius XM Inc., Canadian Satellite Radio Holdings Inc., XM Canada’s parent company, has announced a definitive agreement to combine Sirius Canada Inc. and XM Canada.

Sirius XM holds 47 percent of Canadian Satellite Radio Holdings. The all-stock deal puts the value of the combined company at approximately $520 million, which includes long-term debt of approximately $130 million.

Combined, the new company will have more than 1.7 million subscribers.

CSR chairman John Bitove Jr. will be chairman of the new company. Current Sirius Canada president and CEO Mark Redmond will be CEO, and XM Canada CFO Michael Washinushi will be CFO. Michael Moskowitz will remain as CEO of XM Canada and Jason Redman as CFO of Sirius Canada through the approval process and transition.

The merger requires approval from CSR’s shareholders (other than Sirius XM and its affiliates) at a meeting slated for February 2011; the Canadian Radio-television and Telecommunications Commission, in addition to other conditions.

Under the terms of the new deal, CSR Investments, an entity controlled by Bitove and the controlling shareholder in CSR, will hold 22.7 percent equity interest, CBC/Radio-Canada and Slaight Communications each with 15 percent; and Sirius XM Radio Inc. 37.1 percent.