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 $92.90 in premarket trading while Sprint soared more than 70% to $8.30. 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.