OVERLAND PARK, KS— Cellular carriers Sprint (NYSE: S) and T-Mobile (NASDAQ: TMUS) are nearing the completion of a $26 billion merger which would create a telecommunications giant with a worldwide market share of over 3%. “This exciting transaction would be a win-win for both companies and skyrocket the combined entity to the top of the cellular services industry,” said the chief executive of Sprint in a recent press release regarding the merger.
However, no merger is without criticism. The companies are being challenged by a series of state attorneys general that have banned together to fight the deal. “This combined entity would be a cellular superpower and simply have too much leverage in the market,” said California attorney general Xavier Becerra in a public statement about the nearly consummated transaction. “Can’t we all agree that no single provider should have over two percent of the market? This is a clearly anticompetitive merger that is counter to America’s fundamental principle of maintaining a free market,” he argued.
Sprint and T-Mobile stocks have increased as investors speculate the deal will ultimately be successful.