Qwest and U S WEST Receive Clearance from DoJ, Clearing Path for Merger Approval

Strategic Insights -

The proposed merger between Qwest Communications International Inc. and U S WEST, Inc. has received a significant boost as they received clearance from the U.S. Department of Justice (DoJ), clearing the way for the two companies to move forward with regulatory approval by the Federal Communications Commission and several states. The DoJ's clearance marks the second significant federal decision in favor of the merger in the last month, with the Securities and Exchange Commission deciding not to review the companies' registration statement filing on August 19. The merger, which will create a new company named Qwest Communications International Inc., will employ about 64,000 people and be headquartered in Denver, combining the world's most advanced network with the nation's leader in high-speed DSL Internet access.

Key Takeaways:

  • Qwest and U S WEST have received clearance from the U.S. Department of Justice (DoJ) for their proposed merger.
  • The DoJ's clearance clears the way for the two companies to move forward with regulatory approval by the Federal Communications Commission and several states.
  • The merger will create a new company named Qwest Communications International Inc., employing about 64,000 people and headquartered in Denver.
  • The combined company will link one of the world's most advanced fiber-optic networks to 29 million customers and a local network that is 99.2% digitally switched.
  • The two firms have more than three million miles of deployed fiber in the U.S. and worldwide.
  • Qwest and U S WEST have filed with the FCC and regulatory commissions in seven states: Arizona, Colorado, Minnesota, Montana, Utah, Washington, and Wyoming.
  • The companies plan to hold shareowner approval meetings on November 2 in Denver and New York City, respectively.

Statistics:

  • The combined company will employ about 64,000 people worldwide.
  • The merged company will have more than 3 million miles of deployed fiber in the U.S. and worldwide.
  • The company will link one of the world's most advanced fiber-optic networks to 29 million customers and a local network that is 99.2% digitally switched.
  • The Qwest Macro Capacity(R) Fiber Network spans more than 18,500 miles in the United States.

Sources:

  • Qwest Communications International Inc. Press Release, dated September 7, 2020 (no date provided)
  • PR Newswire, "Qwest and U S WEST Receive Clearance from U.S. Department of Justice for Proposed Merger", dated September 7, 2000