MoFo Successfully Guides Sprint through Department of Justice Clearance and $5 Billion Divestiture in Connection with the Pending Merger with T-Mobile

07/26/2019

Jeff Jaeckel and Brandon C. Parris

Corporate, Mergers + Acquisitions, and Antitrust Law

MoFo News Item

On July 26, 2019, Sprint Corporation and T-Mobile US, Inc. announced that, following a one year plus process, they have reached agreement with the U.S. Department of Justice (DOJ) and entered into a consent decree to secure DOJ’s approval of the merger.

This announcement in connection with the pending landmark merger of Sprint and T-Mobile US, Inc. represents another significant step to complete the merger, a transaction that implies a combined company enterprise value of approximately $146 billion as of the April 2018 announcement. MoFo is lead counsel to Sprint and SoftBank Group Corp., the controlling shareholder of Sprint.

In connection with the consent decree, the companies announced agreements with DISH Network Corporation in which Sprint will divest certain assets, including its prepaid businesses and Sprint’s 800 MHz spectrum assets to DISH. Total consideration for the divestitures is approximately $5 billion and the divestitures are contingent on the successful closing of T-Mobile’s merger with Sprint among other closing conditions. The DOJ action moves the Sprint/T-Mobile merger one step closer to closing, pending other regulatory approvals and the satisfaction of other closing conditions.

MoFo is lead counsel to Sprint and SoftBank in the merger with T-Mobile and the divestiture transactions with DISH. The MoFo regulatory team is led by Washington, D.C., antitrust partner Jeff Jaeckel and the MoFo transaction teams are led by San Francisco M&A partner Brandon C. Parris.

Read the companies’ press release.

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