The U.S. Department of Justice today indicated that it approves of T-Mobile USA’s plan to merge with MetroPCS.
Technically, the Justice Department allowed the shot clock, during which it would voice any formal objections or block the merger, to run out without fileding any complaints or taking any action against the merger. In so doing, the merger has been given approval. T-Mobile USA’s planned merger with MetroPCS still needs to pass muster with the Federal Communications Commission and MetroPCS’ stockholders.
Some of MetroPCS’s investors have recently indicated they will not approve the merger, but Deutsche Telekom, parent company of T-Mobile USA, believes the merger will proceed as planned. MetroPCS has scheduled a shareholder vote on the merger for April 12. The Justice Department has taken a more active role in approving mergers in the wireless industry in recent years, and in 2011 blocked AT&T from acquiring T-Mobile USA.
The DoJ’s approval of the T-Mobile/MetroPCS deal means it sees little or no downside to consumers or the competitive market as a whole.
