T-Mobile US has secured clearance for its takeover of Sprint, after a US federal court rejected an appeal from state attorneys general against the deal. The companies hope to complete the deal by 01 April, nearly two years after the merger of the third- and fourth-largest mobile operators was first announced.
Over a dozen states, led by New York and California, launched a lawsuit against the merger last summer, saying the deal would reduce competition and result in higher prices for consumers. The states' appeal came despite the merger already securing conditional approval from the FCC and the US Department of Justice.
T-Mobile and Sprint argued that their merger would help them compete better against market leaders AT&T and Verizon as well as roll out a 5G network and improve broadband services more quickly. The agreements with the FCC and DoJ included plans to spin off assets to Dish Network to build its own mobile network business and expand broadband coverage in the US.
The judge in the US federal court for the Southern District of New York heard the case in December. The just published ruling is that the merger is not expected to significantly lessen competition.
New York's attorney general, Letitia James said they "disagree wholeheartedly" with the decision and will consider filing an appeal.
T-Mobile and Sprint still have certain regulatory formalities to complete before the merger is finalised, such as approval from another court for the settlement with the DoJ and clearance from the California public utility commission. In addition, they must agree the financial conditions of the all-stock deal, following the fluctuations in their share prices since the merger was first announced in April 2018. The companies said the aim is to complete the transaction by 01 April.
