US: Delrahim confirmation may bode well for Sprint

Makan Delrahim will have several mega mergers to address now that he has won confirmation to lead the US Department of Justice’s antitrust division, including a union of Sprint and wireless rival T-Mobile.

Bloomberg reports that Delrahim has lobbied on behalf of companies seeking mergers, including health insurers Anthem Inc. and Cigna Corp., whose bid to combine failed.

Delrahim will have a full plate. In addition to Sprint/T-Mobile, he must address AT&T’s proposed acquisition of Time Warner Inc. and Bayer AG’s bid to acquire Monsanto, the report says.

The proposed Sprint/T-Mobile marriage — media reports have the two close to agreement, with a deal announcement expected in October — received other good news this week, when the Federal Communications Commission (FCC) found that the wireless industry has “effective competition.” During the Obama administration, the FCC objected to the deal partly because of fears it might stifle competition.

For now, at least, these are all merely hypotheticals. Sprint and T-Mobile haven’t even announced a deal — and that might not happen until October if reports from Reuters and others prove true. Only then will the merger come before the FCC, which must review it to determine if it’s in the public’s interest, as well as the Justice Department, which is charged with scrutinizing it on antitrust grounds.

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