SoftBanks‘ most significant investment in Germany

SoftBanks‘ most significant investment in Germany

Bonn, Sept. 12, 2021

SoftBank and Deutsche Telekom have agreed on a share swap. The German telecom operator will acquire shares in T-Mobile US owned by SoftBank in exchange for a 4.5% ($5 billion) stake in its company.

The deal increases Deutsche Telekom’s exposure to the U.S. market and gives SoftBank access to millions of customers in Europe and the Americas. SoftBank becomes Deutsche Telekom’s third-largest shareholder, after the German government and BlackRock.

Deutsche Telekom plans to acquire another $2.4 billion in SoftBank shares with funds from the recent sale of its Dutch unit to private equity firms Warburg Pincus and Apax.

The deal represents SoftBank’s most significant investment in Germany. The company had already invested in online car marketplace Auto1 and payments company Wirecard. SoftBank shares rose 9.8% after the deal was announced, but are still 35% below their highs this year.