An organization can make decisions that affect its entire operations in corporate level strategy. Merger and acquisition (M & As) is one of these strategies that refer to the act of restructuring different companies into an entity that provides growth and positive value. In separate definition, Acquisition is where the company takes over another one legally while merger is when two companies join to form a single entity. However, not all proposed M&A deals proceed as intended. These failures are caused by an array of reasons that are highlighted in this paper.
The acquisition of the United States wireless career T-mobile by Sprint is a good example of failed deals. Sprint sort to acquire T-mobile with a value of 30 billion and such a deal would have made the two entities become the largest mobile carrier in the United States. Unfortunately, the deal hit a rock bottom and it was cancelled. The main reason as to why the acquisition was terminated is the government’s regulations. In the United States, there are four big mobile carriers and combination of the two will adversely affect the economy. For example, it would increase competition to the rival two competitors and force them to exit. As a result, the M & A would act as a monopoly by controlling the market. It would solely set the communication prices without consideration of the market forces suppressing the consumers. Therefore, the government practiced its consumer protection duties by regulating the deal. Competition enables the market value of products maintained and allowing the consolidation of Sprint and T-mobile would allow monopolization of communication. As a result, communication would be quelled despite its fundamental importance to the society.