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T-Mobile and Sprint’s $26.5 billion mega-merger is really happening

California won’t try to stop a $26.5 billion mega-merger between telecoms giant T-Mobile and the struggling Sprint, CNET reports.

A US District Court approved the deal last month, which sees the third and fourth largest telecoms providers in the US become one. This is expected to swell T-Mobile‘s subscriber base to 140 million, helping it compete with AT&T and Verizon.

The decision not to appeal the court’s ruling comes by way of a settlement between California and T-Mobile, with the latter agreeing to protect low-income consumers and the jobs of local Sprint workers.

[Read: Sprint stocks up 75% after judge approves $26.5 billion T-Mobile merger]

T-Mobile will also reportedly pay back California and the other states for costs associated with their investigations and litigation, a fee that’s expected to total around $15 million.

This acquisition was in limbo for over two years

Led by New York and California, the attorney generals of more than a dozen states filed a lawsuit back in 2018. This kept the plans in limbo until now, despite federal regulators having already given them the green light.

The states argued that reducing the number of major telecoms providers would inevitably drive prices up and stifle innovation in the industry.

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