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The merger between the telecommunications giants T-Mobile and Sprint is in jeopardy.
Department of Justice staff recommends the deal, which would form a $146 billion company to take on Verizon and AT&T, be blocked, according to Reuters. Still, the DOJ is up to a month away from making a final ruling, the report said. Earlier this week, the deal received a stamp of approval from a majority of the Federal Communications Commission.
The deal, which has been four years in the making and involves T-Mobile exchanging 9.75 Sprint shares per unit of T-Mobile, would join the third- and fourth-largest US wireless providers, giving them a combined 127 million customers. That would make it the No. 3 carrier behind Verizon and AT&T.
Deutsche Telekom would own 42% of the combined company, while SoftBank, which controls 85% of Sprint, would own 27%. Other investors would hold the remaining 31%.
T-Mobile was down 2% ahead of Wednesday’s opening bell while Sprint was lower by 4%.
Joe Ciolli contributed to this report.