Department of Justice Approves USD 26 Billion Merger of T-Mobile and Sprint | Financial Buzz

Department of Justice Approves USD 26 Billion Merger of T-Mobile and Sprint

The Department of Justice has announced an agreement for the merger between the third and fourth largest carriers in the U.S. T-Mobile (NASDAQ: TMUS) and Sprint (NYSE: S). At first, the merger, announced in 2018, was condemn by many states who have filed a lawsuit against the Companies as the merger might harm competition.

To counteract the accusation of harming competition, the agreement states that Sprint will have to divest their subsidiaries’ prepaid phone business, which will include Boost Mobile and Virgin Mobile. In addition, Sprint & T-Mobile will also divest part of their wireless spectrum to Dish Network (NASDAQ: DISH) and make over 20,000 cell sites and hundreds of retail stores available to Dish. Dish wireless customers will also be granted access to T-Mobile’s network for seven years in the agreement.

Although the agreement alleviates the “harming of competition” T-Mobile and Sprint will still have to go to court and defend the merger from the lawsuit filed by the states, proposed to be held on Oct. 7th.

“Today marks an incredibly important step forward for the New T-Mobile. We are ready to bring this supercharged Un-carrier to consumers and businesses across the country, and this milestone brings us much closer to making that vision a reality for customers everywhere!” said T-Mobile CEO and New T-Mobile CEO John Legere in T-Mobile’s press release about the approval.

The New T-Mobile is set to invest nearly USD 40 Billion over three years to rapidly build their nationwide 5G network, create thousands of new jobs, expand to reach over 50 million rural residents, and open 600 additional New T-Mobile retail locations across America.