MetroPCS, T-Mobile USA Merger Gets ‘Green Signal’ From All Regulators

MetroPCS, T-Mobile USA Merger Gets ‘Green Signal’ From All Regulators
By T-Mobile (File derived from T-Mobile logo.svg) [Public domain], via Wikimedia Commons

The merger of MetroPCS Communications Inc (NYSE:PCS) and T-Mobile USA Inc. (a subsidiary of Deutsche Telekom AG (FRA:DTE) (PINK:DTEGY) (ETR:DTE)) now has the green light from all regulators. The deal was announced last year, and under it, Deutsche Telekom AG (FRA:DTE) (PINK:DTEGY) (ETR:DTE) will acquire MetroPCS and merge it with T-Mobile USA in order to increase its presence in the U.S.

MetroPCS, T-Mobile USA Merger Gets 'Green Signal' From All Regulators

Today The Wall Street Journal reports that the companies have passed all of the regulatory barriers to the merger. The latest approval comes from the U.S. Foreign Investment Committee, which has ruled that the merger will not cause any concerns with national security. It came after last week’s approval from other U.S. regulators.

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The company resulting from the merger will be a publicly traded company that will be 74 percent owned by Deutsche Telekom AG (FRA:DTE) (PINK:DTEGY) (ETR:DTE). At this point the only barrier to the merger that’s left is the approval of MetroPCS Communications Inc (NYSE:PCS) shareholders. They will vote on the merger on April 12. Both carriers say they expect that the deal will close not long after the meeting finishes.

MetroPCS Communications Inc (NYSE:PCS) has urged its shareholders once again to agree to the deal. Shareholders haven’t been entirely pleased with the idea of a merger. Two hedge funds reportedly said that the company formed by the merger would start out with too much debt, so it would be unable to compete effectively in the market.

The shareholders also said that the interest rate that Deutsche Telekom AG (FRA:DTE) (PINK:DTEGY) (ETR:DTE) is charging is not reasonable. They’re urging MetroPCS Communications Inc (NYSE:PCS) to push for better terms, a deal with a different company or just remaining independent.

Shares of MetroPCS are trading mostly flat in Thursday afternoon trades.

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