Deutsche Telekom exploring merger with T-Mobile, Bloomberg News reports

April 21 (Reuters) - Deutsche Telekom is ‌considering a full ​combination ​with T-Mobile US that could result in the largest public M&A deal on record, Bloomberg News reported on Tuesday, citing people familiar with ‌the matter.

The German telecoms group has been in talks about creating a ⁠new holding company that would make a stock bid for shares of both Deutsche Telekom and ‌T-Mobile, the report said.

Deutsche Telekom is ‌the majority shareholder in T-Mobile, with a stake of nearly 53%, according to LSEG data.

Shares of T-Mobile, with a market value of about $218.57 billion, rose more ​than 1% following the news.

Deutsche Telekom has a valuation of about $166.46 billion. In February, the company said it had no plans to sell any T-Mobile shares ⁠in 2026.

The potential merger could create the world's biggest wireless operator by market capitalization, beating China Mobile Ltd, ​valued at $234.67 billion.

"Deutsche Telekom's tighter grip on T-Mobile is all about backing its strongest asset and building the broader group around that ​momentum," said PP Foresight analyst Paolo Pescatore.

Discussions are ‌at a preliminary stage and any transaction would require political support to move ahead, according to the report, which added that details ⁠of the potential deal could also change.

Deutsche Telekom and T-Mobile declined to comment when contacted by Reuters. The White House and the Federal Network Agency, the primary regulatory body overseeing ⁠telecommunications in Germany, did not immediately respond to requests.

The German telecoms group has been the majority owner ​of the U.S. wireless carrier since buying VoiceStream for $50.7 billion in 2000 and renaming it T-Mobile USA. Its stake was diluted after T‑Mobile merged with MetroPCS in 2013 and then Sprint ‌in 2020.

Deutsche Telekom's shareholders, including the German state and government-controlled bank KfW, both of which own 14%, would have a say ‌in the potential merger.

Deutsche Telekom beat fourth-quarter core profit expectations in February but issued a ⁠mixed outlook for 2026, while T-Mobile ‌raised its forecast for ​2027 service revenue and adjusted free cash flow.

(Reporting by Juby Babu in Mexico City, additional reporting by Zaheer Kachwala in Bengaluru; Editing by ‌Pooja Desai)

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