US telecoms regulator the FCC has passed T-Mobile USA and MetroPCS’ proposed reverse merger without conditions. In a statement FCC commissioner Jessica Rosenworcel said she hoped the approval would help create a stronger fourth carrier and create more…
US telecoms regulator the FCC has passed T-Mobile USA and MetroPCS’ proposed reverse merger without conditions.
In a statement FCC commissioner Jessica Rosenworcel said she hoped the approval would help create a stronger fourth carrier and create more competition.
“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,” she said.
In its report the regulator said that on balance the public interest benefits exceeded the harms, and that the newly merged operator would provide greater competition to the top three nationwide service providers.
Commenting on the decision T-Mobile’s CEO John Legere said: “The FCC’s approval marks another significant milestone in bringing our two companies together, and we appreciate the Commission’s timely approval. We look forward to completing the transaction and delivering the significant customer and stockholder benefits that this combination will make possible.”
The Department of Justice has also officially rubber stamped the tie-up. Earlier this month MetroPCS said that the DOJ would not be taking action against the deal under the Hart-Scott-Rodino antitrust act, which meant it had effectively approved the transaction.
In a statement yesterday the DOJ said the merger could have a “procompetitive impact” on the wireless market, as it improves T-Mobile’s scale and spectrum position.
The deal now has to get past MetroPCS’s shareholders, some of whom have been vociferous in their criticism of the merger agreement. Earlier this week MetroPCS’ CEO Roger Linquist dismissed shareholder concern saying the tie-up would create value for shareholders and that the terms of the transaction were fair.
The vote is set to take place at an EGM on 12 April. Analysts have suggested that T-Mobile’s parent Deutsche Telekom might put forward improved terms to MetroPCS shareholders before that date to ensure the deal passes.
