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Deal Logic Sprint / T-Mobile
(2019)
The two major US mobile operators, T-Mobile US Inc (T-Mobile) and Sprint Corp (Sprint), announced the merger of both firms in April 2018. The merger was initiated by T-Mobile that recently ranked as the third largest player in the US mobile telecommunication market. The transaction supports T-Mobile's aim to build the most extensive mobile network with the highest transmission capacity until 2024.
Deutsche Telekom AG and SoftBank will hold 42.0% and 27.0% of the new firm respectively. As a consequence of the deal, the new entity will challenge the top two market leaders Verizon and AT&T and reform the current telecommunication business landscape in the USA.
Deal Logic Linde / Praxair
(2018)
Currently in news for the last moment approval from the Federal Trade Commission to make the Praxair and Linde merger a reality, the development of the deal has not been short of hurdles. Initially, Praxair-Linde faced resistance from the European Union under the accusation that the merger would hinder competition. Later, both companies had to undertake multiple selling transactions to meet the anti-trust requirements of the countries in which they operated. Praxair and Linde were finally able to meet the requirements in early November for a successful completion of the merger.
Linde and Praxair, the world’s no. 2 and no. 3 industrial gas suppliers respectively, were in the spotlight due to the size of the merger and the impact that it would have on the gas industry, almost making them a monopoly firm.
Deal Logic BB&T / SunTrust
(2019)
Two regional retail banks merging to become the 6th largest bank in the US sounds very much like inorganic growth. After all, that is how Chemical Bank, Manufacturer's Hanover Trust Company, Chase Manhattan Bank and J.P. Morgan became one of the largest banks in the world today. But an aspect which is more relevant today than ever is inorganic growth enabling organic growth. Scalability applies to technology on the revenue side as well as on the cost side and gives larger banks a crucial competitive advantage. The strategic option of consolidation seems to be something which was long overdue, considering the dynamic market environment.