Tags: T-Mobile | MetroPCS | merger | approved

Merging T-Mobile With MetroPCS Wins Approval From US Agencies

Tuesday, 12 March 2013 03:38 PM EDT

Deutsche Telekom AG’s proposal to combine its T-Mobile USA unit with smaller MetroPCS Communications Inc. won approval from U.S. competition and telecommunications authorities.

Allowing the fourth- and fifth-largest U.S. wireless carriers to combine will benefit American consumers as the mobile market continues to strengthen, Federal Communications Commission Chairman Julius Genachowski said in an e-mailed statement today. Benefits include more high-speed wireless service, the agency said in an order.

The combination is unlikely to harm consumers, and may help T-Mobile become a stronger competitor, the Justice Department said in an e-mailed news release announcing it closed its investigation into the deal.

David Henderson and Jim Mathias, spokesmen for Bellevue, Washington-based T-Mobile and Richardson, Texas-based MetroPCS, didn’t immediately return voicemail and e-mail messages seeking comment.

The deal aims to reinvigorate T-Mobile, a target of a failed purchase attempt by second-largest U.S. wireless carrier AT&T Inc. in 2011. T-Mobile will take on subscribers and capacity from MetroPCS to compete with AT&T, market leader Verizon Wireless and Sprint Nextel Corp., the third-largest U.S. provider.

Deutsche Telekom, Germany’s largest telephone company, on Oct. 3 announced the deal that will leave the Bonn-based company with 74 percent of the new business after paying MetroPCS shareholders $1.5 billion in cash.

MetroPCS dropped 18 cents at 2:48 p.m. New York time to $10.32, 29 percent below its October high as news of the deal broke. Deutsche Telekom’s American depositary receipts, each representing one share, dropped 8 cents to $10.85.

Paulson & Co., the biggest investor in MetroPCS, has said it wants to block the deal. The combined company would hold too much debt, John Paulson, founder and majority owner, said in a Feb. 28 letter to the MetroPCS and Deutsche Telekom boards.

© Copyright 2026 Bloomberg News. All rights reserved.


Companies
Deutsche Telekom AG's proposal to combine its T-Mobile USA unit with smaller MetroPCS Communications Inc. won approval from U.S. competition and telecommunications authorities.
T-Mobile,MetroPCS,merger,approved
284
2013-38-12
Tuesday, 12 March 2013 03:38 PM
Newsmax Media, Inc.

Sign up for Newsmax’s Daily Newsletter

Receive breaking news and original analysis - sent right to your inbox.

(Optional for Local News)
Privacy: We never share your email address.
Join the Newsmax Community
Read and Post Comments
Please review Community Guidelines before posting a comment.
 
Get Newsmax Text Alerts
TOP

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved
NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved