DT Plans Merging with T-Mobile US

Deutsche Telekom is considering a merger with its subsidiary T-Mobile US. The new entity would create the world’s largest wireless operator by market capitalisation.

German telco giant, which holds a 53% stake in T-Mobile, is rumoured to be weighing the creation of a new holding company which will make a stock bid for shares in both companies. The proposed new entity would be jointly owned by both companies’ current investors.

If it reaches fruition, the merged group could then seek listings on a major US and European exchanges, although details remain fluid. The German operator achieved its goal of becoming the majority stakeholder in T-Mobile US in 2024.

Discussions are at a preliminary stage, and any potential transaction will require political support in both the US and Germany to move forward. The German government and state-owned lender KfW together hold approximately 28% of DT, giving them considerable influence over any outcome.

Winning approval could require commitments to maintain a substantial operational base in Germany alongside major investment pledges in the US. The potential combination follows DT’s steady accumulation of T-Mobile shares in recent years and the appointment of former DT Germany CEO Srini Gopalan as T-Mobile’s CEO in November.