Sprint will try to acquire US T-Mobile in 2014
T-Mobile could be acquired by Sprint in 2014 for more than $20 billion
The US wireless market is a step closer to more consolidation since the third largest operator in the country is preparing a bid for the fourth carrier – T-Mobile. Wall Street Journal and The Verge report that the bid should be made in Q1 2014 and Sprint is likely to offer more than $20 million for its rival. Softbank, the Japanese bank that recently bought Sprint will try to merge two of the largest operators in the US, though its move is not officially confirmed. However, it won’t be a big surprise because only combined together T-Mobile and Sprint can rival the leading companies – Verizon and AT&T.
At the same time, T-Mobile’s owner – Deutsche Bank is rumored to plan again an exit from the US market, after the failed deal with AT&T in 2011. Back then, AT&T was very close to buy T-Mobile, but the deal fell through. Now, the German bank could renew its interest in selling its US telecom business.
The possible merger between Sprint and T-Mobile would face some difficulties. First, the regulatory battle and second the antitrust authorities. If they found the possible merger and eliminating of the fourth largest US player anticompetitive, the deal could be stopped. Same thing happened in 2011 when the FFC decided that the merger between AT&T and T-Mobile was not in the public interest. Of course, now the situation is a bit different, since even combined the third and the fourth companies will be behind the big two in customer base. That said, the future merger may be approved by the US authorities and Verizon and AT&T may have a significant rival on the US market.
Source: The Verge