Will the world's largest operator be established? The merger of T-Mobile and Deutsche Telekom will also dethrone the Chinese telecom

Deutsche Telekom, which is the largest shareholder of T-Mobile, is considering a full merger with the American branch. This would create the largest international telecommunications group. As a result of this record-breaking merger, a new holding company would be established, which would submit a tender offer for shares of both Deutsche Telekom and T-Mobile, Bloomberg reported.

The transaction would create a telecommunications corporation that would manage both Deutsche Telekom and T-Mobile. Its shares could be listed on the US and German stock exchanges at the same time. For now, these are only leaks of information rather than official announcements, because talks on this subject are at a very early stage. Besides, this is not a new idea, so it is not known whether it will come to fruition this time.

For now, T-Mobile's shares are performing better than those of Deutsche Telekom and generate the lion's share of the group's profits. Combining the companies could reduce these disparities and provide greater leverage for subsequent acquisitions. At the same time, pit would also create the world's largest mobile operator by market capitalization, overtaking China Mobile Ltd., valued at approximately USD 235 billion.

However, the transaction will not be a “walk in the park”. In practice, Berlin, which holds approximately 28 percent, should also agree to it. shares in Deutsche Telekom and Washington. For now, it is unclear whether there is political freedom to do so.

There would also be an EU obstacle to overcome. Brussels is working on new merger guidelines that could support the creation of European companies that could fight Chinese and American rivals.

Both companies must also convince investors that an international gigagroup would be better than separate entities that attract investors who are interested in a specific market.

ed. aw

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