Justice Department tells T-Mobile, Sprint it has concerns about merger: sources

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The U.S. Justice Department has told T-Mobile US Inc and Sprint Corp that it opposes their planned US$26 billion merger in its current form, a ...

REUTERS: The U.S. Justice Department has told T-Mobile US Inc and Sprint Corp it has concerns about their US$26 billion merger in its current structure, sources familiar with the matter said on Tuesday, although no final decision has been made.

T-Mobile has defended the proposed merger, saying the combined company would be better and faster at building 5G, the next generation of wireless, to compete with industry leaders AT&T Inc and Verizon Communications Inc. T-Mobile US Chief Executive John Legere was in Washington on Tuesday and has meetings later this week at the U.S. Federal Communications Commission, which is also reviewing the deal, two people briefed on the matter said.Sprint declined to comment. Legere said on Twitter it was"simply untrue," as had been reported, that Justice Department staff had told the companies the deal was unlikely to be approved in its current form. The Justice Department declined to comment.

The agreement to combine the carriers, struck in April 2018, was approved by both companies’ shareholders in October and has received national security clearance, but still needs approval from the Justice Department and FCC. A number of state attorneys general are also reviewing the deal.Executives from both companies faced tough questions from lawmakers in February about how the companies' planned merger would affect prices and jobs, especially in rural America.

 

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