Deutsche Telekom Suspends T-Mobile Merger Offer While Holding 52.8% of U.S. Unit
Key Facts
Deutsche Telekom has decided not to make a formal offer at this time to merge with its U.S. unit, T-Mobile US, suspending the deal process without closing the door to resuming it later. Bloomberg Law reported that the German telecoms giant "chose not to make a formal offer at this time." Opposition from the works council was one reason for the decision, according to the report. It described the potential deal as possibly the largest merger between publicly listed companies ever. Suspending the offer puts a transatlantic deal up against an internal obstacle, while Deutsche Telekom’s existing ownership of the U.S. unit remains an important basis for the relationship between the two companies.
Deutsche Telekom owns 52.8% of T-Mobile US, according to the company’s website, which lists data dated February 18, 2026. That means the German company already holds a majority stake in the unit whose merger was the focus of the proposal. However, the report said the works council opposed proceeding with a formal offer at this time. It gave no alternative date for making one or details of the terms of a final deal. Bloomberg Law said Deutsche Telekom could decide to proceed with an offer at a later date, making the suspension temporary based on the information available.
The potential deal also faces government approval requirements in Germany: Reuters reported that the federal government, as Deutsche Telekom’s largest shareholder, must approve completion of the merger. Reuters cited concerns that moving the company’s headquarters abroad could result in the government losing control of it. In September, Elliott urged Deutsche Telekom to abandon the potential merger and consider other ways to boost shareholder value, including increasing share buybacks. These positions point to different paths under consideration for the deal’s future and the value of the shareholders’ stake, without the report on the offer’s suspension specifying whether or when the company might return to negotiations. The possibility of a later offer remains open, but is uncertain.
The debate over the merger’s future coincided with strong operating performance that the company attributed to its group earlier in the year. Deutsche Telekom’s revenue reached 29.9 billion euros in the second quarter of 2026, up 3.3% organically year on year, according to its August announcement. CEO Tim Höttges said, "Our operations continue to perform well," adding that all of the group’s segments posted notable growth in the first half of 2026. These figures provide a backdrop to the group’s performance ahead of its third-quarter results, but do not address the potential financial impact of any merger. T-Mobile US, meanwhile, gained more new customers in the third quarter than experts had expected, as it had in the previous three months, according to a dpa-AFX report.
In equity markets, EL7 data showed Deutsche Telekom shares trading under the ticker DTEGY closed at $29.4 on October 22 and then at $28.02 on October 28, 2026. A dpa-AFX report, citing JPMorgan, said continued uncertainty over the potential merger had remained a drag on the share price, although the prospect of the plan being frozen offered some investors relief. Closing-price data alone do not establish that the stock rose or fell because of the decision to suspend the offer, and do not include the daily trading range. In the same context, T-Mobile gained more new customers than experts had expected in the third quarter, an operating development the report cited alongside continued uncertainty over the deal. The market therefore faced two concurrent factors: the U.S. unit’s customer gains and uncertainty over the merger’s future.
The next near-term milestone is Deutsche Telekom’s announcement of its third-quarter results on November 5, 2026, according to its investor relations calendar. The median analyst estimate published by the company on October 23 was 30.379 billion euros for group revenue and 11.962 billion euros for adjusted earnings before interest, taxes, depreciation and amortization after leases. The upcoming results provide the first scheduled opportunity to track the group’s performance after the offer was suspended, while the information provided gave no date for resuming the merger process. The possibility of a later offer remains open, according to Bloomberg Law, with no decision or timetable confirmed. Attention in the near term is therefore turning to the group’s results, while the deal’s path remains open.