Deutsche Telekom is considering a full combination with T-Mobile US that could result in the largest public M&A deal on record, Bloomberg News reported on Tuesday, citing people familiar with the matter.
The German telecoms group has been in talks about creating a new holding company that would make a stock bid for shares of both Deutsche Telekom and T-Mobile, the report said.
Deutsche Telekom is the majority shareholder in T-Mobile, with a stake of nearly 53%, according to LSEG data.
Shares of T-Mobile, with a market value of about $218.57 billion, rose more than 1% following the news.
Deutsche Telekom has a valuation of about $166.46 billion. In February, the company said it had no plans to sell any T-Mobile shares in 2026.
The potential merger could create the world’s biggest wireless operator by market capitalization, beating China Mobile Ltd, valued at $234.67 billion.
“Deutsche Telekom’s tighter grip on T-Mobile is all about backing its strongest asset and building the broader group around that momentum,” said PP Foresight analyst Paolo Pescatore.
Discussions are at a preliminary stage and any transaction would require political support to move ahead, according to the report, which added that details of the potential deal could also change.
Deutsche Telekom and T-Mobile declined to comment when contacted by Reuters. The White House and the Federal Network Agency, the primary regulatory body overseeing telecommunications in Germany, did not immediately respond to requests.
The German telecoms group has been the majority owner of the U.S. wireless carrier since buying VoiceStream for $50.7 billion in 2000 and renaming it T-Mobile USA. Its stake was diluted after T‑Mobile merged with MetroPCS in 2013 and then Sprint in 2020.
Deutsche Telekom’s shareholders, including the German state and government-controlled bank KfW, both of which own 14%, would have a say in the potential merger.
Deutsche Telekom beat fourth-quarter core profit expectations in February but issued a mixed outlook for 2026, while T-Mobile raised its forecast for 2027 service revenue and adjusted free cash flow.
Source: Reuters.com