Deutsche Telekom Eyes $400 Billion All-Share Merger with T-Mobile US
Deutsche Telekom is in talks to fully merge with T-Mobile US via an all-share stock bid valuing the combined holding at about $400 billion. Deutsche Telekom holds a 53% stake in T-Mobile, which has a $218 billion market value, while its parent is valued at $166 billion.
1. Merger Talks Overview
Deutsche Telekom has entered preliminary talks to fully merge with its U.S. unit T-Mobile US under a plan to form a new listed holding company. The combination would be executed via an all-share stock bid and could create the largest public merger, valued at roughly $400 billion.
2. Proposed Deal Structure and Valuation
Under the proposal, the new holding company would issue shares to existing shareholders of both firms, with Deutsche Telekom contributing its 53% stake in T-Mobile US. T-Mobile’s market capitalization stands at about $218 billion, while Deutsche Telekom’s equity valuation is near $166 billion.
3. Regulatory and Shareholder Considerations
Any transaction would require approval from U.S. and German regulators and support from the German state, which holds a 28% stake in Deutsche Telekom. T-Mobile’s shares rose over 1% on the news, while Deutsche Telekom’s stock dipped about 3%, reflecting market reactions to preliminary deal talks.