Investing.com — shares fell more than 3% on Wednesday after Bloomberg News on Tuesday reported the German telecoms giant is exploring a full combination with its U.S. unit in what could rank as the largest public M&A deal on record.
Deutsche Telekom has been in talks about creating a new holding company that would make a stock bid for shares in both companies, the report said, citing people familiar with the matter. The German group currently holds a stake of nearly 53% in T-Mobile.
A successful deal would create the world’s largest wireless operator by market capitalization, overtaking China Mobile, valued at $234.67 billion. Deutsche Telekom carries a valuation of around $166.46 billion, while T-Mobile’s stands at roughly $218.57 billion.
Discussions remain at a preliminary stage and any deal would require political support in both countries, the report said, adding that terms could still change.
Deutsche Telekom’s shareholder base adds a further layer of complexity. The German state and state-controlled lender KfW each hold a 14% stake, giving both a significant voice over any potential restructuring.
The group has been T-Mobile’s majority owner since acquiring predecessor VoiceStream for $50.7 billion in 2000, with its stake diluted following T-Mobile’s mergers with MetroPCS in 2013 and Sprint in 2020.
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