T-Mobile US [NASDAQ:TMUS] and Sprint [NYSE:S] merger deal
Finally, we may see the close of T-Mobile US [NASDAQ:TMUS] and Sprint [NYSE:S] merger deal as U.S. District court is expected to rule in favor of the T-Mobile and Sprint merger deal according to reports. Following the news Sprint stock skyrocketed 60% in after-hours trading.
A merger deal between number three and number four of U.S. mobile carriers may finally be completed as reports suggesting U.S. District court is expected to rule in favor of the T-Mobile and Sprint merger deal.
The New York Times and Wall Street Journal reported that Judge of the court Victor Marrero is expected to rule a verdict in the favor of deal. The district court session for the decision over trial is being held on Tuesday. Yet it’s difficult to say whether there will be any conditions or restrictions along with green signals for both companies. Both T-Mobile and Sprint will make announcements following the verdict.
Sprint and T-Mobile stocks skyrocketed following the reports. Sprint shares traded 60% up in after-hours trading while T-Mobile stock moved up with 6% upward after-hours push.
Sprint and T-Mobile had announced the $26.5 merger deal back in April 2018. FCC and Department of Justice have already approved the deal. However, yet the transaction hasn’t received approval by California Public Utilities Commission. Around the two-year time T-Mobile also went for a deal with DISH Network to kind ready up the replacement for Sprint as the forth competitive US wireless carrier.
The trial against the deal started two months ago on the petition by 14 state Attorney Generals. New York and California Attorney Generals leading the states presented the concerns of lessening the competition in mobile market and that the prices for wireless services will likely increase. State attorneys will have right to appeal the judge’s decision.
The carriers argued that the merger will indeed help to accelerate the timeline for the 5G technology in the country while they also reasoned the merger would not reduce the competition by saying there is sufficient competition in US wireless market.