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The move would create a combined entity valued at around $267 billion
Deutsche Telekom is considering merging with its US unit, T-Mobile, according to a report from Bloomberg citing people familiar with the matter.
Deutsche Telekom already owns a 53% stake in the US company but is now reportedly considering forming a holding company to combine the two businesses.
If such a deal were to be struck, this new company would be jointly owned by both companies’ existing shareholders and would potentially seek a listing in both the US and Europe, the sources said. Reporting from the Financial Times suggests the latter would likely take place in Luxembourg, Amsterdam, or Dublin, rather than Germany, for take advantage of lower tax.
The same sources emphasise that discussions are at an early stage and no formal decisions have been made.
Neither Deutsche Telekom nor T-Mobile have commented on the media report.
Deutsche Telekom has gradually increased its stake in T-Mobile over the past five years, growing from roughly 43% in 2021, following the T-Mobile–Sprint merger, to today’s 53%.
The US unit is by far Deutsche Telekom’s most valuable business, comprising around 72% of the operator group’s total value.
A merger of this scale would trigger intense scrutiny from both American and European regulators, with impact on competition, foreign ownership of critical infrastructure, and aligning cross-border regulations all key issues.
“We don’t see competition, security, or regulatory issues leading the [US] government to block the deal, but there are significant political issues that might have to be addressed in the deal review,” analysts at New Street Research told Reuters.
Approval from the German government would also be required, with the government currently owning a 14% stake in Deutsche Telekom and state-owned lender KfW also owning 14%. These stakes combined makes the German state Deutsche Telekom’ largest stakeholder.
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