T-Mobile announced on Tuesday its plan to acquire nearly all of United States Cellular’s (US Cellular) wireless operations in a deal valued at $4.4 billion. This strategic acquisition includes US Cellular’s customers, retail stores, and 30% of its spectrum assets, according to a report by Reuters.
The announcement led to a notable surge in US Cellular’s share price, which jumped over 10% in pre-market trading. This development comes almost ten months after US Cellular revealed it was exploring strategic alternatives to enhance its market position.
Despite selling a substantial portion of its operations, US Cellular will maintain ownership of about 70% of its spectrum, its equity-method investments, and its portfolio of 4,400 telecom towers. As part of the agreement, T-Mobile will become a long-term tenant on at least 2,600 of these towers, ensuring continued cooperation between the two companies.
Related: Court Rejects T-Mobile’s Appeal Bid in Antitrust Case Over Sprint Merger
T-Mobile has assured investors that this acquisition will not affect its financial forecasts or shareholder return program for 2024. The telecom giant anticipates generating approximately $1 billion in operational expense and capital expenditure synergies from the deal.
The transaction is set to be finalized by mid-2025, pending regulatory approvals. Importantly, US Cellular’s shareholders are not required to take any action concerning this deal, indicating a smooth transition process is expected.
Source: Reuters
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