Deutsche Telekom approves MetroPCS merger
Deutsche Telekom has approved MetroPCS shareholder’s decision to merge with the German company’s T-Mobile USA unit.
Following advice earlier this month to support the merger, the two companies expect to finalise the transaction on May 1 this year.
The new company will be consolidated into the Deutsche Telekom group on the same date.
T Mobile USA and MetroPCS are the fourth and fifth largest wireless companies in the US respectively, and the merger will create a combined carrier with over 40 million customers.
“We’re very happy and also relieved that we finally got this solution,” René Obermann, CEO at Deutsche Telekom, said in a statement.
“Not only because we finally have clarity – as we all know, uncertain situations are never comfortable for anyone involved. Most of all, I’m happy that we can finally get going.”
Under terms of the agreement, MetroPCS shareholders are expected to receive an estimated $1.5 billion advanced cash payment from their company.
The merged company will reportedly trade under the legal name T-Mobile US, and will be listed on the New York Stock Exchange as TMUS.