The Committee on Foreign Investment in the United States (CFIUS) has approved Deutsche Telekom’s takeover of MetroPCS through its subsidiary T-Mobile USA. The operators now have all the necessary regulatory approvals ahead of MetroPCS’ EGM next…
The Committee on Foreign Investment in the United States (CFIUS) has approved Deutsche Telekom’s takeover of MetroPCS through its subsidiary T-Mobile USA.
The operators now have all the necessary regulatory approvals ahead of MetroPCS’ EGM next month, where its shareholders will vote on the proposed merger.
CFIUS said that it had no unresolved national security concerns with respect to the transaction, according to a joint statement from the companies.
The tie-up was agreed in October last year. In November the Department of Justice (DOJ) decided to ask the companies to submit further information on the proposed transaction and extended its review of the deal. Earlier this month the DOJ said it would not be taking action against the deal under the Hart-Scott-Rodino antitrust act and then rubber-stamped the merger.
The Federal Communications Commission (FCC) followed, passing the proposed transaction – which unites the US’s fourth and fifth largest wireless carriers – without conditions. “By allowing these two market disrupters to join forces and harmonise their spectrum holdings, today’s action should ultimately lead to more choices and lower prices for consumers,” FCC commissioner Jessica Rosenworcel said at the time.
MetroPCS shareholders will vote for or against the reverse merger on 12 April. Activist investors against the deal in its current form and the operators in favour of it are both fiercely lobbying in an attempt to swing shareholders. Dissenting investors have said the deal is unfair to MetroPCS shareholders.
Analysts have suggested that Deutsche Telekom might put forward improved terms to MetroPCS shareholders before that date to ensure the deal passes.
