Deutsche Telekom is weighing a full merger with its U.S. mobile arm, T‑Mobile US, in talks that could reshape the global telecom hierarchy. Sources say the German group would create a new holding company and launch an all‑stock offer for the shares it already controls. Such a structure would likely sit outside Germany and list on both a U.S. and a major European exchange.

Deutsche Telekom, Europe’s biggest telecom with a market cap exceeding €142bn, has leaned heavily on the American subsidiary’s growth since the 2020 Sprint merger. T‑Mobile US now commands a $215bn valuation and competes head‑to‑head with Verizon and AT&T. A combined entity would sit among the largest public‑market deals ever attempted.

The proposal remains at an early stage, and neither side has confirmed details. Regulators in Germany and the United States would need to clear the transaction, where the German government and state bank KfW each hold roughly 14% of Deutsche Telekom, giving them a decisive voice. Analysts say the tie‑up would tighten DT’s grip on future U.S. M&A.

If finalized, the merged group would give Deutsche Telekom unrivaled influence over American mobile consolidation and protect T‑Mobile from hostile bids. Investors would likely reassess valuation metrics for both entities, while the dual‑listing plan could broaden the shareholder base. The move underscores DT’s strategy to cement its position as a transatlantic telecom powerhouse.