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 already owns 53% of T-Mobile US, has discussed the idea of a merger with its U.S. subsidiary. A potential deal would create a corporate group that controls the operations of DT and T-Mobile US, 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 U.S. and Europe.

DT in a statement to Bloomberg said it doesn't comment on "speculation regarding their corporate activity," while T-Mobile US declined to comment.

DT previously regained its majority stake in T-Mobile US back in 2023, and has had a stake in the U.S. operator since 2001.

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

German state-owned lender KFW owns a combined stake of about 28% in DT, 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 telecom consolidation and, along with other European telco CEOs, has been critical of European regulations in the telecom industry.

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