T-Mobile buys Us Cellular's wireless business for 4.4 billion

T-Mobile Us, the second largest mobile phone operator in the US, has agreed to buy a large part of US Cellular Corp. as part of a roughly $4.4 billion deal that would bring more consolidation to the industry. Which, however, is a far cry from the sector in Europe with its more than 100 operators.

But so be it. The deal will take place through 'a combination of cash and up to $2 billion of debt to be assumed by T-Mobile through an exchange offer', the company's website states. The forecast is to close in mid-2025. Synergies have been forecast at '$1 billion at the time of integration, with the total cost to achieve integration currently estimated at between $2.2 billion and $2.6 billion'

For T-Mobile this deal means more than four million new customers as well as (valuable) spectrum usage rights. In this context, the Deutsche Telekom subsidiary - which in the US is fighting in the market against AT&T and Verizon - pointed out that the deal, which will be subject to antitrust review, is strategically important in order to reach more rural areas and areas where T_Mobile has coverage gaps.

"Combining UScellular's network resources with our own will allow us to fill connectivity gaps that will create a better experience for all our customers with increased coverage and capacity," said T-Mobile CEO Mike Sievert in a statement.

"In the face of increased competition and the growing capital intensity required to keep up with the latest technologies, and following our careful and deliberate strategic review, we are convinced that continuing to carry out our mission requires a level of scale and investment that is best achieved by integrating our wireless operations with those of T-Mobile," U.S. Cellular President LeRoy Carlson Jr. said in a statement.