MetroPCS said that the US Department of Justice has made no objection to its proposed merger with T-Mobile USA before a regulatory deadline expired, although the deal still faces a number of other obstacles ahead of completion.

The deal still has to get the approval of the US Federal Communications Commission (FCC), the Committee on Foreign Investment in the US (CFIUS), as well as MetroPCS’ own shareholders who will vote on whether to accept the deal on 12 April.

There is significant opposition from leading shareholders to the proposed merger. Hedge fund Paulson & Co, the biggest investor in MetroPCS, last week said it intends to vote against the deal, having previously voiced concerns about the tieup.

While supporting “the strategic merits” of the combined entity, the hedge fund said it will carry “too much debt at too high an interest rate to be competitive in the well-capitalised US wireless industry”, according to a statement.

Paulson & Co joins another leading shareholder, Schoenfeld Asset Management (PSAM), in opposing the deal. PSAM said MetroPCS would be better off remaining as a standalone company and looking at alternative deals to the T-Mobile one.

The proposal has also felt some opposition from US unions which are concerned about possible job losses. A report in the Seattle Times said T-Mobile is planning more than 100 job losses at its Bellevue headquarters in Washington state. The company did not comment on the report.