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Sprint and T-mobile could merge as early as 1 April

The long gestating merger deal between the United States’ third and fourth largest telecommunications companies is close to completion

The long gestating merger deal between the United States’ third and fourth largest telecommunications companies is close to completion.

A new amendment to their agreement has set out terms by which the deal could be completed as early as 1 April of this year, with the new company retaining the T-Mobile name.

That amendment has been born out of the relatively poor performance of Sprint since the deal was first signed, while T-Mobile recently beat estimates for its quarterly results. Consequently, for Sprint’s owner SoftBank will receive one share of T-Mobile for every 11 Sprint shares, up from one for every 9.75 initially.

John Legere, the current CEO of T-Mobile, said: “Today’s announcement is another significant step forward toward finally closing this transaction! Throughout this journey, T-Mobile and Sprint have been singularly focused on one thing: building a supercharged Un-carrier that will offer U.S. consumers a broad and deep nationwide 5G network, more choice and greater competition. We are now on the threshold of achieving our goal.”

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The new T-Mobile’s ownership is expected to be constituted 43% by Deutsche Telekom, 24% by SoftBank and 33% by public shareholders. SoftBank was originally going to have 27% to Deutsche Telekom’s 42%.

“With today’s agreement in place, we are now turning our attention toward our goal of closing this transaction and creating the New T-Mobile as early as April 1, 2020,” said Mike Sievert, COO and President of T-Mobile and set to be CEO from May 1, 2020.

T-Mobile US, which is owned by the german company Deutsche Telekom, first made its intentions clear in 2017, but was held up by a number of legal wrangles. The final hurdle is yet to be cleared, with approval still pending from a number of bodies including the California Public Utilities Commission

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