US telecommunications giant AT&T will be acquiring Deutsche Telekom's US subsidiary T-Mobile for $39 billion.
The acquisition, which will make AT&T America's largest mobile phone company, is expected to take a year to be cleared by regulators as it involves the merger of the US's second and fourth largest mobile phone services provider. The acquisition is the sixth largest mobile phone industry deal of all time.
According to Bloomberg, Sprint Nextel Corp had held talks with T-Mobile's parent company last month but was unable to offer a satisfactory price for the company.
AT&T, which is currently the second largest mobile phone carrier in the US behind Verizon Wireless, will be able to add 34 million more users to its network and become the largest phone company. Apart from the money, Deutsche Telekom will receive an 8 per cent stake in AT&T.
Randall Stephenson, AT&T chairman and chief executive officer said in a statement, “We studied this thing extensively over the last few months and we’re very confident it will be approved. Most local markets have a choice between five carriers, so the space will remain fiercely competitive.”
The deal is only the second largest acquisition for AT&T after the $83 billion acquisition of BellSouth in 2006.