The proposed merger of telecom companies Sprint Corp. and T-Mobile US is reportedly be facing a regulatory hurdle.
Citing people familiar with the matter, the Wall Street Journal reported that the U.S. Department of Justice (DOJ) is skeptical of the $26.5 billion all-stock acquisition of Sprint by T-Mobile over antitrust concerns.
The proposed acquisition, which was first announced nearly a year ago, is apparently under the DOJ’s scanner as the Department is questioning the companies' arguments that the merged entity would create efficiencies, as reported by the Journal citing people familiar with the matter.
However, T-Mobile CEO John Legere tweeted about the report, "The premise of this story, as summarized in the first paragraph, is simply untrue. Out of respect for the process, we have no further comment."