Deutsche Telekom's transatlantic focus has sharpened.
It's struck a share-swap deal with Softbank to increase its stake in U.S. unit T-Mobile.
The two two deals were announced on Tuesday (September 7).
Deutsche Telekom will raise its stake in T-Mobile US by 5.3% to over 48%.
That brings the company closer to its goal of securing direct control over the $170 billion U.S. telecoms operator.
Softbank will in return receive cash and a 4.5% stake in Deutsche Telekom.
That establishes a direct shareholding relationship, after the Japanese group sold its U.S. Sprint unit to T-Mobile in a deal in 2020.
As part of the latest restructuring Deutsche Telekom also sold its Dutch unit.
It wants to get within touching distance of majority ownership over T-Mobile US.
The unit accounts for three-fifths of group sales and is its most profitable operation.
For Softbank, the share swap deal gives it a strategic holding in Deutsche Telekom, which is present in a dozen European countries.
Shares in Softbank, which is the world's biggest tech investor through its Vision Fund portfolio, rallied by 10% on the news in Tokyo.
While Deutsche Telekom gained as much as 2.2 percent in early deals, before easing back.