T-Mobile’s $4.4 Billion Acquisition of UScellular Approved by DOJ
Synopsis
The American justice department has approved T-Mobile’s $4.4 billion acquisition of Uscellular, closing its antitrust investigation and allowing the deal to move ahead. The deal was first announced in May 2024 and includes UScellular’s…
The American justice department has approved T-Mobile’s $4.4 billion acquisition of Uscellular, closing its antitrust investigation and allowing the deal to move ahead. The deal was first announced in May 2024 and includes UScellular’s wireless operations, retail stores, customer base, and around 30% of its wireless spectrum assets.
The approval comes under the Trump administration’s more lenient approach towards corporate mergers. The decision signals a shift from the tougher decisions on antitrust taken during President Biden’s term.
UScellular Couldn’t Compete, Says the Justice Department
In a statement, Gail Slater, head of the Justice Department’s antitrust division, said that the company struggled to keep up with the financial demands of competing in the telecom industry. “The company could not keep pace with the rising cost of investing and technology, which would have eventually hurt its network quality and customer experience,” she explained.
The investigation found no clear evidence that the merger would reduce competition in a way that justified legal action. However, Slater did warn that the merger further concentrates wireless spectrum among the country’s three major companies, Verizon, AT&T, and T-Mobile, which are already in control of 80% of the industry.
T-Mobile ends DEI programs ahead of deal approval
Interestingly, the clearance came just after T-Mobile and its diversity, equity, and inclusion programmes, likely under political pressure as the company sought regulatory approvals. T-Mobile is also working on a joint venture with investment from KKR to buy internet provider, Metronet, which also requires approval from the communications commission.
After the announcement, UScellular’s stock rose by 2% in after-hours trading while T-Mobile’s shares also saw a slight bump. This steel is one of several major mergers approved under the current administration. In June, the Justice Department and the Federal Trade Commission also gave the green light to a deal, which combined to $63 billion.
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