Two major U.S. wireless carriers are reportedly almost ready to submit a proposed agreement to antitrust regulators for approval. This mega business merger between T-Mobile and Sprint is projected to draw negative comments from the current presidential administration as the antitrust regulators adamantly expressed disapproval of proposed AT&T/Time Warner merger earlier this year. If approved, the T-Mobile/Sprint deal will create a combined company valued at approximately $146 billion. California residents considering stock purchases in either of these companies may want to stay updated on the situation.
Telekom currently owns a major portion of T-Mobile and would reportedly have controlling interest in the new company if the business merger takes place. Sprint and T-Mobile have always been fierce competitors. For the past four years, they’ve been discussing a plan to combine efforts to take on other telecommunications giants, such as those mentioned earlier in this post.
The public would hold approximately 31 percent of the shares in the new company if the merger goes through. Company leaders say the new company would provide an unsurpassed network experience for its customers. As it stands, T-Mobile and Sprint have combined liabilities totaling $60 billion.
Not every potential deal between two or more companies involves assets worth more than $100 billion. However, even mergers that take place on much smaller scales can significantly impact productivity and profitability within their respective companies. In fact, some mergers keep companies from going under and propel them toward future success by expanding their sizes and making them stronger competitors. To avoid major delays and obstacles in a proposed plan, it is always a good idea to have someone well-versed in California business and commercial law on hand to address any issues that arise.