In a new report from Wall Street Journal, the merger between T-Mobile and Sprint has hit resistance from the Department of Justice’s antitrust division.
With the deal valued at $26 billion, the antitrust division is currently deciding on whether the deal would present an, “unacceptable threat to competition.”
In a meeting earlier this month, Justice Department staff members laid out their concerns with the all-stock deal and questioned the companies’ arguments that the combination would produce important efficiencies for the merged firm, the people said.
To alleviate concerns, it is reported that T-Mobile and Sprint could could offer concessions, such as assets sales.
From a consumer standpoint, we aren’t sure what happens next. The ball is in T-Mobile and Sprint’s court to convince our government that a merger of the two carriers won’t be a bad thing. If they’re unable to do that, the deal falls through.
We have a solid overview of the merger if you’re only now hearing about it.
// Wall Street Journal