US Justice Dept Clears Verizon-Alltel Merger

November 1, 2008 · By Kalyani Mukherjee Filed Under News Tagged as: Alltel, Verizon Wireless

The proposed merger between two of the biggest mobile carriers in America, Verizon Wireless and Alltel Corp, took one step closer to reality after the US Department of Justice gave its nod to the deal.

The planned acquisition of rural carrier Alltel by Verizon Wireless will result in the largest cellphone company in United States if Verizon divests in around hundred markets across twenty-two states. Sources close to negotiations have pegged the price of acquisition at $28.1 billion and after the recent credit crisis, there was speculation in some quarters whether Verizon Wireless would go through the deal at all. However after it gets the green light from all government agencies, Verizon Wireless will most likely complete all requirements of the acquisition.

Verizon Wireless agreed to sell operations in the markets that overlap with Alltel so that the anti-trust concerns of federal regulators can be eased. The divestitures are expected to cover the whole of North Dakota and South Dakota as well as large areas of Colorado, Georgia, Kansas, Montana, Utah, Wyoming and South Carolina besides some regions in fourteen other states. The proposed merger is yet to be approved by Federal Communications Commission as well.

Verizon Wireless is a joint venture between Verizon Communications Inc and Vodafone Group PLC.

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