Deutsche Telekom sells its Dutch arm

Deutsche Telekom has struck a $7 billion share-swap deal with SoftBank Group to increase its stake in US unit T-Mobile and sold its Dutch unit in a major shake-up that strengthens the German group’s transatlantic focus.

As a result of the two deals announced on Tuesday, Deutsche Telekom will raise its stake in T-Mobile US by 5.3% to 48.4%, bringing chief executive officer Tim Hoettges closer to his goal of securing direct control over the $170 billion US telecoms operator.

SoftBank will in return receive cash and a 4.5% stake in Deutsche Telekom, establishing a direct shareholding relationship after the Japanese group sold its US Sprint unit to T-Mobile in a deal that closed in early 2020.