A US court is set to approve the proposed $26.5 billion merger between T-Mobile and Sprint later today, according to reports in the US press.
A report in the Wall Street Journal claims that sources close to the matter claim that the long awaited merger will get the green light later on today.
The merger has already been granted regulatory approval by the Federal Communications Commission and the Department of Justice but has also had to fight a last minute appeal brought by a group of disgruntled attorney generals from states across the country. The individual states objected to the merger on a number of grounds, chief amongst which was the suggestion that the merger would impact negatively on the regional job market.
Chris Shelton, president of the Communications Workers of America (CWA) union had previously stated that the deal would destroy American jobs, whilst profiting the foreign owned parent companies of both T-Mobile (Deutsche Telekom - Germany) and Sprint (Softbank - Japan).
“Trusting Sprint and T-Mobile with American jobs is like trusting a vampire at a blood bank,” Shelton said.
In an effort to allay these concerns, T-Mobile and Sprint had been going state to state, cutting concessions on an ad-hoc basis, with a number of states ultimately withdrawing their objections.
However, a number of key states remained opposed to the merger, including New York and California.
Despite the objection, sources claim that the merger will receive final approval to proceed later today.
The merger of the two telcos would automatically create the US’ third biggest telco, with the scope and scale to challenge Verizon and AT&T for dominance in the US market.