The US Department of Justice (DoJ) has allowed the approval process for the proposed merger of T-Mobile USA and MetroPCS to proceed, after a 30-day period of waiting expired without intervention, reports ZDNet. Following the waiting period, which is mandated under US anti-monopoly law, the deal must gain regulatory approval from the Federal Communications Commission (FCC) and the Committee on Foreign Investment (CFIUS) due to T-Mobile’s parent Deutsche Telekom (DT) being based in Germany, while MetroPCS shareholders will vote on whether to approve the deal or not on 12 April 2013.
Previously, the DoJ intervened to effectively block a proposed deal to merge T-Mobile USA into AT&T, forcing the companies to abandon the plan in December 2011.
According to TeleGeography’s GlobalComms Database, in October 2012 DT and MetroPCS signed a definitive agreement to combine T-Mobile USA and MetroPCS under the T-Mobile name. DT’s supervisory board and MetroPCS’ board of directors unanimously approved the transaction, which will be structured as a recapitalisation, in which MetroPCS will declare a one for two reverse stock split, make a cash payment of USD1.5 billion to its shareholders, and acquire all of T-Mobile’s capital stock by issuing to DT 74% of MetroPCS’ common stock on a pro forma basis. MetroPCS expects to complete the merger sometime in the second quarter of 2013, while T-Mobile is aiming to migrate all MetroPCS customers over to its network by 2015.