T-Mobile & Sprint refute reports about $26Bn merger in jeopardy

By Nikita Chaurasia  Date: 2019-04-18

T-Mobile & Sprint refute reports about $26Bn merger in jeopardy

T-Mobile US Inc. and Sprint Corp reportedly claim that they have not received legal notice from the United States Justice Department that their $26 billion strategic deal could be rejected by federal regulators without major refinements. The companies in fact, are consistently working with government officials to accomplish the deal, stated sources familiar with the development.

Recent reports claim that the DOJ’s antitrust staff have notified company authorities that the department will most likely reject the deal considering it could eliminate competition in the wireless business space by slashing the number of key carriers. The DOJ staff had reportedly made the announcement over a private meeting in the presence of T-Mobile and Sprint representatives.

Regulators are anticipated to soon indicate their consent about the merger deal. In early April, the two sides began discussing the merger and what is being examined by the government. But then the DOJ’s staff didn’t conclude anything and provided no recommendations about making significant changes in the combined company for the transaction to advance, stated sources familiar with the matter.

The DOJ’s staff is reportedly concerned about the possibilities of anti-competitive behavior considering the decline in wireless carriers. Makan Delrahim, DOJ Antitrust Chief is recognized as a pro-business advocate, however, he will have to thoroughly examine the antitrust implications of the transaction, reported sources.

Apparently, the merger between the telecom giants is one of the carefully followed transactions on Wall Street and in Washington D.C. During Obama administration too the companies failed to get the deal approved by the Federal Communications Commission’s political regulatory apparatus and the DOJ’s antitrust division.

However, company officials state having a better chance of approval from the Trump administration’s DOJ and FCC. Officials also claimed that the loss of one major wireless carrier would hardly impact pricing for consumers as the merged entity will still witness tough competition from AT&T and Verizon.

About Author

Nikita Chaurasia     aeresearch.net

Nikita Chaurasia

An accomplished professional in the field of content development, playing with words comes naturally to Nikita Chaurasia. After completing her post-graduate MBA degree in Advertising and PR, Nikita worked across numerous content-driven verticals, undertaking diverse r...

Read More

More News By Nikita Chaurasia

CDC updates guidelines, calls for vaccinated people to mask up

CDC updates guidelines, calls for vaccinated people to mask up

By Nikita Chaurasia

The Centers for Disease Control and Prevention issued new guidelines suggesting that people who are vaccinated against Covid-19 wear masks in public as well as indoor areas where the rate of the disease is high. The CDC also stated that teachers, sta...

iPhone’s hot streak could be hampered by global chip shortage crisis

iPhone’s hot streak could be hampered by global chip shortage crisis

By Nikita Chaurasia

Apple Inc. recently stated that the global chip shortage that has affected the sales of Macs and iPads, will now hit iPhone production and the expected revenue growth is likely to decelerate. This has resulted in lowering Apple’s shares. The c...

EV maker Rivian bags USD 2.5 Bn in a funding round led by Amazon, Ford

EV maker Rivian bags USD 2.5 Bn in a funding round led by Amazon, Ford

By Nikita Chaurasia

American electric vehicle maker Rivian Automotive LLC reportedly secured USD 2.5 billion in a funding round led by Amazon.com Inc, T. Rowe Price, D1 Capital Partners, and Ford Motor Co. In addition, the event also saw participation from Fidelity Man...

ICEA forms committee chaired by HP India MD to boost IT hardware sector

ICEA forms committee chaired by HP India MD to boost IT hardware sector

By Nikita Chaurasia

The India Cellular & Electronics Association (ICEA) recently announced the formation of a committee to promote manufacturing and exports of the IT hardware sector. The panel headed by Ketan Patel, HP India’s Managing Director, will set up a...

Amazon to stop on-site COVID-19 testing in U.S. warehouses this month

Amazon to stop on-site COVID-19 testing in U.S. warehouses this month

By Nikita Chaurasia

Amazon is reportedly planning to discontinue on-site Coronavirus testing for its warehouse employees in the United States. The retail giant confirmed slowing down the testing by 30th July and will only resume after receiving new guidelines change fro...