Justice Department antitrust enforcement staff have told T-Mobile US and Sprint that their planned merger is unlikely to be approved as currently structured, people familiar with the matter told the Wall Street Journal. In a meeting earlier this month, Justice Department staff members laid out their concerns with the deal and questioned the companies’ arguments that the combination would produce important efficiencies for the merged firm.
T-Mobile Chief Executive John Legere responded to The Wall Street Journal article in a tweet, saying "The premise of this story, as summarized in the first paragraph, is simply untrue. Out of respect for the process, we have no further comment." Sprint Executive Chairman Marcelo Claure tweeted, "We continue to have discussions with regulators about our proposed merger with @TMobile. That process is ongoing and we have no further comment."
A Justice Department spokesman didn’t respond to requests for comment.Public filings show the Federal Communications Commission is wanting more data from the companies several elements of their proposed combination, including the calculated cost savings and how they would use wireless infrastructure to provide home broadband service, the WSJ reported. A final decision on the merger is still likely several weeks away, people familiar with the matter said.
