Deutsche Telekom (DT) is considering merging its business with T-Mobile US in a move that would create a multinational telecom group.

Bloomberg reports that DT, which is the largest shareholder in T-Mobile with a 53 percent stake, has discussed the idea of a merger with its US subsidiary.

A potential deal would create a corporate group that controls the operations of Deutsche Telekom and T-Mobile, and would be jointly owned by the two companies’ current investors.

If this goes ahead, the newly created entity could seek a separate listing in the US and Europe.

Deutsche Telekom said it doesn't comment on "speculation regarding their corporate activity" in a statement to the newswire, while T-Mobile declined to comment.

DT previously regained its majority stake in T-Mobile back in 2023. The telco has had a stake in T-Mobile since 2001.

The report does note that discussions are in the preliminary stages and would likely require political support in both Germany and the US to push through.

German state-owned lender KfW owns a combined stake of about 28 percent in Deutsche Telekom, meaning KfW will likely have a major say in whether the deal can happen.

Sources told Bloomberg that the new holding company would likely be incorporated in a European jurisdiction outside Germany.

DT is currently led by Tim Höttges, who has notably called for more telecoms consolidation and, along with other European telco CEOs, has been critical of European regulations in the telecoms industry.

Meanwhile, T-Mobile US appointed its CEO, Srini Gopalan, last year, replacing Mike Sievert in November.