Deutsche Telekom Bulks Up T-Mobile US Stake as it Sells Dutch Unit

Deutsche Telekom has struck a $7 billion share-swap deal with SoftBank Group to increase its stake in the US unit T-Mobile and sold its Dutch unit in a major shake-up that strengthens the German group’s transatlantic focus.

As a result of the two deals announced on Tuesday, Deutsche Telekom will raise its stake in T-Mobile US by 5.3 per cent to 48.4 per cent, bringing chief executive officer Tim Hoettges closer to his goal of securing direct control over the $170 billion US telecoms operator.

SoftBank will, in return, receive cash and a 4.5 per cent stake in Deutsche Telekom, establishing a direct shareholding relationship after the Japanese group sold its US Sprint unit to T-Mobile in a deal that closed in early 2020.

The latest transactions seek to lock down that deal by bringing Deutsche Telekom within touching distance of majority ownership over T-Mobile US—which accounts for three-fifths of group sales and is its most profitable unit.

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