The $26 billion merger between T-Mobile Inc. (NASDAQ:TMUS) and Sprint Corp (NYSE:S) may have been signed off by the Department of Justice but state attorneys are opposed to the deal. Currently around 15 states including the District of Columbia are joined in a law suit seeking to stop the deal and it seems Oregon has also been enjoined in the suit.
Oregon joins suit opposing merger
In the suit that was filed in June the states argue that the deal will harm competition and it will be expensive for residents causing them close to $4.5 billion annually. The lawsuit is being led by New York attorney general along with California and most recently they added the attorney general of Texas. The Attorneys are arguing that merging of the companies will reduce number of carried from four to three thus raising prices that customers pay for phone plans.
In a statement on Monday New York Attorney General Letitia James indicated that the addition of Oregon to the laws keeps the momentum of the suit going and it affirms that every regions in the country is against the anticompetitive merger. Oregon Attorney General Ellen Rosenblum stated that if the current plan is not challenged then it will lead to reduced access to wireless network in State something which was unacceptable.
T-Mobile to wait till lawsuit is settled to close deal
The Department of Justice signed off the merger last month on condition that Sprint will divest its prepaid business to Sprint Corp (NYSE:S) to create another wireless carrier. T-Mobile has indicated that it will not close the merger until the lawsuit is concluded.
The companies argue that the merger will help them in deploying 5G network in the company which President Trump has said is vital for national security. It will also enable the companies to companies to compete with the country’s large carriers (AT&T Inc. NYSE:T) and Verizon Communications Inc. (NYSE:VZ). The Federal Communications Commission approved the merger deal between the companies in May