Approval and Integration Risks for the Sprint–T-Mobile Merger
First written in FY2018. 5 of 7 entries say "Mitigated", first in FY2019-Q3. Latest entry: FY2021-Q1.
No other company in this theme has enough history to compare yet.
- FY2021-Q1MitigatedAnnual report
「Upon completion of the transaction, effective 1 April 2020, Sprint ceased to be our subsidiary, and T-Mobile, the new post-merger company, became an equity-method associate.」
Regulatory approval and closing risks related to the T-Mobile merger were substantially reduced upon completion of the merger. T-Mobile was subsequently excluded from equity-method associates following the partial sale of its shares. - FY2020-Q3MitigatedAnnual report
「This secured all federal regulatory approvals required to close the transaction. In addition, 18 of the 19 state public utility commissions (PUCs) whose approval was required had already approved the transaction, leaving only approval from the California PUC outstanding.」
Approval has been obtained from the federal regulatory authorities, including the DOJ and FCC, for the merger with T-Mobile, as well as from the PUCs in 18 of the 19 states, reducing approval risk. Conditions including approval by the California PUC remain, however. - FY2020-Q2MitigatedAnnual report
「On 5 November 2019 (U.S. Eastern Time), the U.S. Federal Communications Commission (FCC) announced its conditional approval of the transaction. This secured all federal regulatory approvals required to close the transaction.」
The FCC's conditional approval completed the federal regulatory approvals and reduced merger approval risk to some extent. However, state PUC approval and resolution of the injunction lawsuit remained outstanding. - FY2020-Q1MitigatedAnnual report
「On 26 July 2019, the U.S. Department of Justice announced that it would approve the transaction subject to compliance with the terms of the proposed consent judgment filed by the Department. In connection with this action by the DOJ, Sprint and T-Mobile agreed to sell Sprint's prepaid wireless business to DISH Network Corporation, subject to the closing of the transaction and satisfaction of other conditions precedent.」
The DOJ's conditional approval and the agreement to sell the prepaid business to DISH Network Corporation reduced merger approval risk to some extent. However, approval from other regulatory authorities, including the FCC, was still required. - FY2019-Q3MitigatedAnnual report
「On 17 December of the same year, approval was obtained from the Committee on Foreign Investment in the United States (CFIUS).」
Obtaining some of the regulatory approvals required for the merger with T-Mobile reduced approval risk to some extent. However, reviews by the FCC, DOJ and other regulatory authorities were continuing. - FY2019-Q1RestatedAnnual report
「The transaction required approval from the shareholders and regulatory authorities of Sprint and T-Mobile, as well as satisfaction of other customary closing conditions.」
For the merger with T-Mobile, the closing conditions, including shareholder and regulatory approvals, and the expectation that it would be completed by the middle of 2019 at the latest, were reaffirmed. - FY2018First statedAnnual report
「The transaction required approval from the shareholders and regulatory authorities of Sprint and T-Mobile, as well as satisfaction of other closing conditions. Although the transaction was expected to close by the middle of 2019 at the latest, if various factors, including obtaining approval from the relevant regulatory authorities, prevented the transaction from being completed on the planned terms and schedule, or prevented completion of the transaction itself, the Group's business activities might not develop as expected or might become impossible.」
In connection with the merger agreement with T-Mobile, new risks were disclosed concerning shareholder and regulatory approvals, closing by the middle of 2019, and the realization of synergies after integration.