Deutsche Telekom's (DT) plans to merge with its American unit T-Mobile US appear to be off.

A report by Bloomberg, which first reported a possible merger was on the cards back in April, has said the move has hit a snag.

Pushback from Deutsche Telekom's works council has led the telco to opt against submitting a formal bid, according to people familiar with the matter.

DT is the largest shareholder in T-Mobile with a 53 percent stake, after it previously regained its majority stake in T-Mobile back in 2023. The telecoms giant has had a stake in T-Mobile since 2001.

A merger between the two companies would be the largest-ever public merger, though for now such an idea seems to have been shelved.

It comes nearly two months after New York activist hedge fund Elliott Management built a sizable stake in DT, while warning that it would plan to oppose a possible merger.

Any deal would have also needed to satisfy a number of stakeholders, notably the German state, which owns a 28 percent stake in DT.

There was no mention of a possible union with DT during T-Mobile's earnings call this week.