Deutsche Telekom is reportedly exploring a merger with its subsidiary T-Mobile U.S., a move which could create the world’s largest wireless operator by market capitalisation.
Bloomberg reported Deutsche Telekom, which holds a roughly 53 per cent stake in T-Mobile, is rumoured to be weighing the creation of a new holding company which will make a stock bid for shares in both companies.
The news agency’s sources stated the proposed new entity would be jointly owned by both companies’ current investors.
If it reaches fruition, the merged group could then seek listings on a major US and European exchanges, although details remain fluid.
The German operator achieved its goal of becoming the majority stakeholder in T-Mobile US in 2024.
Discussions are apparently at a preliminary stage and any potential transaction will require political support in both the U.S. and Germany to move forward.
The German government and state-owned lender KfW together hold approximately 28 per cent of Deutsche Telekom, giving them considerable influence over any outcome.
Bloomberg noted winning approval could require commitments to maintain a substantial operational base in Germany alongside major investment pledges in the US.
The potential combination follows Deutsche Telekom’s steady accumulation of T-Mobile shares in recent years and the appointment of former Deutsche Telekom Germany CEO Srini Gopalan as T-Mobile’s CEO in November.
Source: Mobile World Live
Image Credit: T-Mobile U.S.
