T-Mobile and Sprint come closer to finalising merger

T-Mobile and Sprint will join forces to become one of the largest phone companies in the world.

T-Mobile store Source: Bloomberg

T-Mobile and Sprint are closer to completing their merger. The two phone companies are set to have their financial union approved by a US national security panel. The joint venture between the two corporations is expected to be completed by early 2019. T-Mobile’s purchase of Sprint is worth $26 billion.

How Huawei was obstacle to merger

T-Mobile and Sprint dropped the controversial phone brand, Huawei, before they complete their merger. Huawei has been in the news recently for the arrest of its chief financial officer (CFO),Meng Wanzhou. The US ordered the arrest amid the belief that the company is being used by the Chinese government to spy on US customers.

To avoid controversy from the conflict between the US and China, the US government pressed T-Mobile’s owner, Deutsche Telekom, to drop the telecommunications company. The end of the deal for Huawei to add 5G to T-Mobile’s networks was one of the final hurdles before the arrangement is complete.

Deutsche Telekom previously noted that it would review its contract with Huawei.

'Deutsche Telekom takes the global discussion about the security of network equipment from Chinese vendors very seriously,’ said the company in a statement.

What the T-Mobile and Sprint deal could mean for customers

The merger between the two companies could signal more profits for them and faster service for customers. The combination of T-Mobile and Sprint would have the latest technology of a 5G network, bringing speedier Internet technology to a wider range of customers. The union of the two telecommunications giants could also lead to fewer options for consumers shopping for a phone carrier. Share prices of both corporations could rise as well. Investors will watch to see how the deal will ultimately play out. The merger still has to be approved by the US Department of Justice before it is finalised.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
Bid
Offer
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Bid
Offer
Updated
Change
Bid
Offer
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.


IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IGA Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

Please see important Research Disclaimer.