NEW YORK (Reuters) – A federal judge on Tuesday approved wireless carrier T-Mobile US Inc’s takeover of Sprint Corp, rejecting a claim by a group of states that said the deal would violate antitrust laws and raise prices.
During a two-week trial in December, T-Mobile and Sprint argued the merger will better equip the new company to compete with top players Verizon Communications Inc and AT&T Inc, creating a more efficient company with low prices and faster internet speeds.
Shares of T-Mobile rose 10% to $93.01 while Sprint soared more than 72% to $8.27 in early trading. Even after a deal closes, the combined company would only be third-largest U.S. wireless carrier by market capitalization.
The states, led by California and New York, had said the deal would reduce competition, leading to higher prices.
The decision by U.S. District Court Judge Victor Marrero clears the path for the deal, which already has federal approval and was originally valued at $26 billion.
Source Reuters Tech News