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- Department of Justice staff recommends the merger between T-Mobile and Sprint be blocked, according to Reuters.
- The deal would join the third- and fourth-largest US wireless providers, making it the No. 3 carrier behind Verizon and AT&T.
- Watch T-Mobile and Sprint trade live.
The merger between the telecommunications giants T-Mobile and Sprint is in jeopardy.
Department of Justice staff recommends the deal, which would form a $146 billion company to take on Verizon and AT&T, be blocked, according to Reuters. Still, the DOJ is up to a month away from making a final ruling, the report said.
The deal, which has been four years in the making and involves T-Mobile exchanging 9.75 Sprint shares per unit of T-Mobile, would join the third- and fourth-largest US wireless providers, giving them a combined 127 million customers. That would make it the No. 3 carrier behind Verizon and AT&T.
Deutsche Telekom would own 42% of the combined company, while SoftBank, which controls 85% of Sprint, would own 27%. The public would hold the remaining 31%.
The merger was expected to face antitrust opposition from the start. The Trump administration put up a fierce defense against the $85 billion deal between AT&T and Time Warner before it was finally approved after the companies were able to reach an agreement with regulators.
T-Mobile was down 2% ahead of Wednesday’s opening bell while Sprint was lower by 4%.
This story is developing. Check back for updates.