The Federal Communications Commission (FCC) has approved T-Mobile USA’s proposed merger with MetroPCS, nudging the deal one step closer to completion. The transaction has received approval from the Department of Justice (DoJ) and must now be approved by MetroPCS’ shareholders, who are set to vote on the deal on 12 April. FCC chairman Julius Genachowski commented: ‘With today’s approval, America’s mobile market continues to strengthen, moving toward robust competition and revitalized competitors. We are seeing billions more in network investment, while the courts have upheld key FCC decisions to accelerate broadband build-out, promote competition, and benefit consumers, including our broadband data roaming and pole attachment rules. Today’s action will benefit millions of American consumers and help the U.S maintain the global leadership in mobile it has regained in recent years’.
As reported by TeleGeography’s CommUpdate in October 2012, T-Mobile owner Deutsche Telekom (DT) and Texas-based MetroPCS announced that they had 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.