According to The Wall Street Journal, the Department of Justice isn't so keen on the impending merger.
The Wall Street Journal reported today that the U.S. Department of Justice is unlikely to approve the planned merger between T-Mobile and Sprint as it's now structured. Sprint Executive Chairman Marcelo Claure also claimed that the "article is not accurate", adding that Sprint "continue [s] to have discussions with regulators about our proposed merger".
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The Journal says Justice Department antitrust staff, which is reviewing the takeover, questioned the companies' reasoning for it in a meeting this month. DOJ spokesman Jeremy Edwards declined to comment on an ongoing investigation. Shares of T-Mobile fell 4 percent. T-Mobile and Sprint agreed to merge under the T-Mobile banner back in April 2018. There's a possibility that T-Mobile and Sprint will offer concessions to ease the government's worries.
T-Mobile and Sprint did not immediately answer messages.
For the past four years, T-Mobile and Sprint have been trying to merge together. But the companies' own previous statements about their 5G plans contradicted those claims, and government officials don't appear to be impressed by the 5G argument.
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T-Mobile has defended the proposed merger, saying the combined company would be better and faster at building 5G, the next generation of wireless, to compete with industry leaders AT&T Inc and Verizon Communications Inc. When companies as big as T-Mobile ... Besides the federal agencies, states are reviewing the merger and could sue to block it even without DOJ help.
A final decision on the matter isn't reportedly slated to come down for several weeks.
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