Germany\u2019's telecommunications giant is exploring a full merger with the US arm in a move that will reshape the global telecommunications sector and potentially overshadow all merger and acquisition deals ever made.<\/p>\n
Deutsche Telekom is considering a full merger with T-Mobile US, widely reported by German local media outlets and first published by Bloomberg, in an agreement that could create the world's most valuable wireless operator and redefine the future of the European technology champion.<\/p>\n
German group already T-Mobile US\u2019in %He holds little more than 53\u2019, making him the dominant shareholder of the American carrier.<\/p>\n
Now, according to people familiar with the matter, the establishment of a new holding company that will offer all-share offers for both firms is being investigated; The two publicly traded giants are brought together into a single transatlantic entity listed on both the US \u2019 and the European \u2019.<\/p>\n
The combined group could be worth up to $400 billion (360 billion euros), surpassing the $202.7 billion Vodafone-Mannesmann merger announced in 1999\u2019; This is currently the largest public merger and acquisition agreement in history, according to data from the London Stock Exchange Group.<\/p>\n
This will make it not only a telecommunications story, but also a turning point in corporate history.<\/p>\n
GermanyA jewel in the industrial crown of \u2019<\/b><\/p>\n
Deutsche Telekom Germany is no ordinary company in \u2019.<\/p>\n
This company, which split from the state-owned Deutsche Bundespost\u2019 in the mid-1990s, remains one of the largest and most strategically important telecommunications groups in Europe. German government and state-owned credit institution KfW\u2019nin total approx. %He has a stake of 28\u2019, which makes Berlin\u2019i not only a passive observer but also a major player in all kinds of deals.<\/p>\n
Their approval is needed for any transaction and this is far from a guarantee.<\/p>\n
A full merger, Berlin\u2019in shares estimated %Until 17-18\u2019e, and potentially roughly what German officials historically saw as the backdrop for strategic business. It will cause it to fall below the \u2019 threshold. This can turn into a political problem as well as a financial one.<\/p>\n
The irony is that the T-Mobile US\u2019 has become the locomotive that drives all the valuation of Deutsche Telekom\u2019. The German company's market capitalization of approximately 135 billion Euro\u2019 %More than 70\u2019 can be attributed to the T-Mobile conglomerate.<\/p>\n
In reality, Deutsche Telekom\u2019's listed shares in Frankfurt\u2019 are increasingly becoming just a complement to the wireless communications business in ABD\u2019. A complete merger formalizes this fact.<\/p>\n
T-Mobile\u2019's comeback story<\/b><\/p>\n
The German-owned journey of the T-Mobile\u2019 has not been easy.<\/p>\n
Deutsche Telekom made an agreement to acquire VoiceStream Wireless\u2019 in 2000, initially with a transaction valued at $50.7 billion (46 billion euros), and after the deal was completed the following year, the company changed its name to T-Mobile USA.<\/p>\n
Ten years later, the business was shedding the blood of its customers and reducing group earnings. Attempt to sell AT&T\u2019ye has been blocked by regulators. Instead, Deutsche Telekom listed T-Mobile\u2019 through a reverse merger with MetroPCS in 2013 and then rebuilt its shares over time.<\/p>\n
T-Mobile has since grown to become the second largest wireless operator in ABD\u2019, which has a larger market capitalization than Deutsche Telekom\u2019 itself and accounts for the majority of the group's profits.<\/p>\n
In short, it is the success story that saved the parent company.<\/p>\n
A holding company with an Irish plan<\/b><\/p>\n
According to a scenario that is currently at the level of speculation due to Deutsche Telekom\u2019's refusal to formally approve or provide details of the deal, a new holding company will offer all shares for both firms, which will belong to existing shareholders in both the U.S. and Europe\u2019, and will be listed in both the U.S. and Europe\u2019, reflecting the structure used in the 2018 merger of industrial gas companies Linde and Praxair\u2019in, where an Irish holding company serves as an impartial vehicle for transatlantic merger.<\/p>\n
The holding company will likely be established outside Germany and Ireland will be seen as a possible model. Whether or not Berlin\u2019 will accept this is another question.<\/p>\n
The next regulatory mountain<\/b><\/p>\n
Obstacles are tough. The shareholders of Deutsche Telekom\u2019 shall not be liable for any capital increase. %It will require the approval of 75\u2019.<\/p>\n
U.S. Congressman Jim Jordan, chairman of the House Justice Committee, said the U.S. government would review any agreement. Bloomberg\u2019e \u201cThe acquisition of T-Mobile\u2019 by a foreign company will attract the attention of our staff\u201d said.<\/p>\n
Antitrust applications, FCC approval and a possible national security review via CFIUS are on the horizon. Negotiations are at an early stage and no agreement can be reached.<\/p>\n
But the fact that this is happening signals something important: After 25 years of buying, listing, almost selling and rebuilding, Deutsche Telekom may finally be ready to bring the T-Mobile\u2019 home.<\/p>","protected":false},"excerpt":{"rendered":"
Deutsche Telekom T-Mobile US\u2019in %He owns 53\u2019. Now he wants the rest of what could turn into the greatest corporate merger in history.<\/p>","protected":false},"author":1,"featured_media":2842,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[514,754,755,753],"class_list":["post-2841","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-genel","tag-almanca","tag-deutsche-telekom","tag-listeyle","tag-t-mobile"],"_links":{"self":[{"href":"https:\/\/www.lojistiknakliye.com\/en\/wp-json\/wp\/v2\/posts\/2841","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.lojistiknakliye.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.lojistiknakliye.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.lojistiknakliye.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.lojistiknakliye.com\/en\/wp-json\/wp\/v2\/comments?post=2841"}],"version-history":[{"count":0,"href":"https:\/\/www.lojistiknakliye.com\/en\/wp-json\/wp\/v2\/posts\/2841\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.lojistiknakliye.com\/en\/wp-json\/wp\/v2\/media\/2842"}],"wp:attachment":[{"href":"https:\/\/www.lojistiknakliye.com\/en\/wp-json\/wp\/v2\/media?parent=2841"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.lojistiknakliye.com\/en\/wp-json\/wp\/v2\/categories?post=2841"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.lojistiknakliye.com\/en\/wp-json\/wp\/v2\/tags?post=2841"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}