Almost one year after US carriers T-Mobile and Sprint agreed to a merger, the deal is still facing several hurdles in the U.S. Earlier on, there were reports that the merger’s approval by the US authority may be hinged on the two parent companies Deutsche Telekom AG (T-Mobile’s parent company) and SoftBank Group Corp (Sprint’s parent company) ditching Huawei’s technology globally. While that may have been agreed upon, there are reports that the deal may still get blocked by some US states.
Bloomberg reports that the attorney generals of several states are worried about the effect the merger would have on competition. The report specifically mentioned California and New York as states that are leading a group of over a dozen states that would file a lawsuit if the Department of Justice does not challenge the deal. The reports quoted unnamed sources of hinting that state enforcers have the power to go to court to block the tie-up even if federal officials at the Justice Department and the FCC approve it. Company representatives on both sides are yet to comment on the matter, but in the meantime, shares fell around 1% after the announcement.
Read Also: T-Mobile and Sprint merger deal approval reportedly hinged on ditching Huawei’s technology
T-Mobile initially offered $26.5 billion to acquire Sprint and all its market presence. This would make the company a major challenger to AT&T and Verizon’s dominance in the United States. The deal will potentially see the new conglomerate controlling over 30% of the US wireless market, with an even higher share in some states.
(source)
