The anticipated merger between T-Mobile and Sprint is unlikely to be approved by Justice Department antitrust regulators, at least as it currently stands, says a report from The Wall Street Journal. The publications says DoJ officials have already informed both carriers that the merger won’t be approved.
The report says officials are skeptical of the argument from T-Mobile and Sprint that the all-stock merger deal would “produce important efficiencies.”
State attorneys general are also taking a close look at the deal and have expressed concerns similar to those of the Justice Department. Some could sue the companies independently if federal officials don’t challenge the merger.
T-Mobile CEO John Legere, who would rule over a combined T-Mobile/Sprint entity, has promised that the “New T-Mobile” would offer prices that will be the same or better for at least 3 years. The carriers have also pushed the supposed 5G benefits that would be created by the merger.
Any final decision by the Justice Department is most likely weeks away, and today’s report says the carriers are still in conversation with the government, and T-Mobile is said to be prepared to offer concessions to gain approval of the deal.
