April 21 (Reuters) – Deutsche Telekom is exploring a full combination with T-Mobile, Bloomberg News reported on Tuesday, citing people with knowledge of the matter.
The German company has been in discussions about creating a new holding company that would make a stock bid for shares of both Deutsche Telekom and T-Mobile, the report said.
Deutsche Telekom is the majority shareholder in T-Mobile, with a stake of nearly 53%, according to LSEG data.
Shares of T-Mobile rose more than 1% following the news.
The potential merger could create the world’s biggest wireless operator by market capitalization, beating China Mobile Ltd, valued at $234.67 billion.
Talks are at a preliminary stage and any transaction would require political support to move ahead, according to the report, which added that details of the potential deal could also change.
Both companies and the White House did not immediately respond to Reuters requests for comment.
(Reporting by Juby Babu in Mexico City; Editing by Pooja Desai)
