Analysts: Approval for potential T-Mobile/Sprint merger 'likely'

The government seems likely to approve a potential merger between Sprint and T-Mobile, Paul Gallant of MF Global wrote in a note released Thursday.

"We believe the government would be inclined to approve a T-Mobile/Sprint merger due to the stronger competitive counterweight it would provide to AT&T and Verizon Wireless and the administration's desire to preserve [the] business-friendly tone that began last year," the note said. 

Approval is "far from certain," however, in part because "the merger would concentrate an already concentrated industry." 

Bloomberg reported this week that the companies have discussed a combination.