Softbank is reportedly close to gaining U.S. government approval for its pending $21.6 billion purchase of a 78% stake in Sprint Nextel, which both companies have said they expect to close by mid-month.
Bloomberg is reporting that the deal has gained approval by two of the necessary three Federal Communications Commission commissioners. The approval also covers Sprint Nextel’s pending acquisition of a greater stake in subsidiary Clearwire.
The deals had previously gained national security clearance after all parties agreed to begin removing equipment from Clearwire’s network that was provided by Chinese infrastructure vendor Huawei. Softbank and Sprint Nextel also agreed to to enter into a “National Security Agreement” with the U.S. government that reportedly involved the inclusion of a four-member national security committee to oversee network operations.
According to the FCC, the Softbank proposal, which was first put forth last October, is currently at day 215 on its “timeclock.” The FCC has typically tried to decided on pending mergers and acquisitions within an 180-day window, though these transactions have had their share of twists.
Sprint Nextel shareholders late last month approved the Softbank transaction following a contentious battle between the Japanese telecom giant and Dish Network over control of Sprint Nextel.
The FCC approval of the deal, along with its recent approval of T-Mobile US’ acquisition of MetroPCS, is seen as the U.S. government attempting to strengthen the nation’s No. 3 and No. 4 operators in the face of market domination by the two largest operators Verizon Wireless and AT&T Mobility. The federal government had previously denied AT&T’s attempt to acquire T-Mobile USA in 2011 for $39 billion citing competitive concerns.
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