News and analysis on global M&A and corporate financing strategies

Finance / United States

AT&T And T-Mobile Merger Blocked By US Justice Department

September 2011 | Corporate Financing Analysis

The US Department of Justice filed a civil antitrust lawsuit to block the proposed merger of AT&T and T-Mobile USA on the grounds that the deal would "substantially lessen competition" for mobile services. It believes the merger would result in "higher prices, poorer quality services, fewer choices and fewer innovative products", according to the filing. While BMI expected the department to demand some changes or concessions from AT&T in order to allow the deal, its relatively swift recourse to the courts is surprising and represents a marked change in the department's attitude towards growth through consolidation in the US mobile market.

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