Deutsche Telekom Eyes Full T-Mobile US Control

Deutsche Telekom is exploring a potential full combination with T-Mobile US, according to a report published Tuesday. The discussions described are focused on a structure that could bring both companies under a new holding company, which would then pursue a stock bid for shares in Deutsche Telekom and T-Mobile.

The German telecom group already controls T-Mobile US through a majority stake of nearly 53%, based on LSEG data cited in the report. If a broader merger were completed, it could rank as the largest public merger and acquisition transaction on record, the report said.

Market capitalization comparisons were central to the rationale outlined in the report. A combined entity could become the world’s largest wireless operator by market value, overtaking China Mobile Ltd, which is valued at $234.67 billion. The report put T-Mobile’s market value at about $218.57 billion and Deutsche Telekom’s at roughly $166.46 billion.

Officials and corporate stakeholders would likely play a decisive role if the idea advances beyond early talks. The report said the discussions remain preliminary, and that any transaction would require political support. In Germany, the state and the government-controlled bank KfW together own 14% of Deutsche Telekom, giving them influence over any potential deal involving the company.

Neither Deutsche Telekom nor T-Mobile commented on the report when approached. In market reaction, T-Mobile shares rose more than 1% after the news.

For investors, the report highlights how cross-border telecom ownership can intersect with national interests and governance. A holding-company approach and a stock-based bid, as described, would place valuation, shareholder approvals, and political considerations at the center of any next steps, particularly given the German public-sector stake in Deutsche Telekom.

Key uncertainties remain. The report did not indicate that a final structure, timeline, or definitive agreement has been reached, and it emphasized that talks are at an early stage. Whether political backing materializes, and how shareholders respond to any proposed stock bid for both companies, would be critical factors in determining if the discussions translate into a formal transaction.