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.