Telekom CEO lobbies for T-Mobile US merger
Deutsche Telekom chief Tim Höttges is seeking government support to merge with its US subsidiary, a move driven by competitive pressure from Elon Musk. The deal faces significant regulatory hurdles and potential blockage by the German state.
Deutsche Telekom CEO Tim Höttges is lobbying Chancellor Friedrich Merz to approve a merger between the German parent company and its US subsidiary, T-Mobile US. Handelsblatt reported that the push is partly driven by competitive pressure from Elon Musk, who is building his own mobile network via SpaceX. The merger would consolidate operations under a single entity, though political and regulatory hurdles remain significant. T-Mobile US is currently valued at nearly €20 billion more than its parent company. The German government, which holds approximately 28.6% of Telekom shares, has the power to block the deal. Potential headquarters for the merged entity include Ireland or Switzerland, with concerns raised about dividend sustainability due to Swiss withholding taxes.