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T-Mobile and Sprint merge officially cleared by US national security panel, still needs FCC & DOJ approval

It was reported on Friday that T-Mobile and Sprint would likely receive approval from U.S. national security officials for their $ 26 billion merger. The Wall Street Journal reports that T-Mobile was granted approval for its takeover of Sprint today after several months of negotiation with company representatives. Sylvania HomeKit Light Strip The approval comes from the Committee on Foreign Investment in the US, or Cfius. The committee is headed by the Treasury Department and is tasked with reviewing foreign deals for national security concerns. In the case of the deal between Sprint and T-Mobile, Cfius is obligated to review details because T-Mobile's majority owner is Deutsche Telekom, which is Germany- based. Meanwhile, Sprint's parent, SoftBank Group, is Japan-based. Friday's report stated that approval of the deal was contingent upon both parent companies agreeing to reduce their use of Huawei devices. Today's report notes that Cfius previously required Sprint to remove Huawei equipment from its U.S. network in 2013 when SoftBank acquired a controlling stake in the carrier. Deutsche Telekom went through a similar process when it entered the U.S. market. This time around, however, neither Deutsche Telekom nor SoftBank are required to "significantly change its business or operations" as a result of the Cfius review. Changes are limited to T-Mobile, Sprint, and their subsidiaries, the report says: Neither Deutsche Telekom nor SoftBank is required to significantly change its own business or operations as a result of Cfius's demands, according to the terms of the merger . Any potential changes…

It was reported on Friday that T-Mobile and Sprint would likely receive approval from U.S. national security officials for their $ 26 billion merger. The Wall Street Journal reports that T-Mobile was granted approval for its takeover of Sprint today after several months of negotiation with company representatives.

Sylvania HomeKit Light Strip

The approval comes from the Committee on Foreign Investment in the US, or Cfius. The committee is headed by the Treasury Department and is tasked with reviewing foreign deals for national security concerns.

In the case of the deal between Sprint and T-Mobile, Cfius is obligated to review details because T-Mobile’s majority owner is Deutsche Telekom, which is Germany- based. Meanwhile, Sprint’s parent, SoftBank Group, is Japan-based.

Friday’s report stated that approval of the deal was contingent upon both parent companies agreeing to reduce their use of Huawei devices. Today’s report notes that Cfius previously required Sprint to remove Huawei equipment from its U.S. network in 2013 when SoftBank acquired a controlling stake in the carrier. Deutsche Telekom went through a similar process when it entered the U.S. market.

This time around, however, neither Deutsche Telekom nor SoftBank are required to “significantly change its business or operations” as a result of the Cfius review. Changes are limited to T-Mobile, Sprint, and their subsidiaries, the report says:

Neither Deutsche Telekom nor SoftBank is required to significantly change its own business or operations as a result of Cfius’s demands, according to the terms of the merger . Any potential changes are limited to T-Mobile, Sprint and their respective subsidiaries, deal documents show.

Note, Cfius has no insight into the overseas networks of Deutsche Telekom and SoftBank.

Approval by Cfius is only the next stap in de goedkeuring proces voor de T-Mobile en Sprint deal. The takeover still requires approval from antitrust officials including the FCC and DOJ. The FCC review is just recently resumed after a brief delay in September.


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