Japanese carrier SoftBank has received national security clearance in its efforts to purchase Sprint Nextel for $20.1 billion.
Both companies were notified by the Committee on Foreign Investment in the U.S. and the deal is now expected to close on July 1st.
Dish Network made a competing $25.5 billion bid last month, claiming that SoftBank having control of a U.S. phone network would compromise national security. It appears the CFI did not agree. As part of the new agreement, the companies must "appoint an independent security director to the new Sprint board."
The security director will have to be approved by U.S. agencies and will be the main contact between Sprint Nextel and the government. Regulators will also have oversight on all network-equipment and services purchased by the merged company.
If the acquisition is completed, SoftBank will own 70 percent of Sprint, the U.S.' third-largest carrier.
Dish Network made a competing $25.5 billion bid last month, claiming that SoftBank having control of a U.S. phone network would compromise national security. It appears the CFI did not agree. As part of the new agreement, the companies must "appoint an independent security director to the new Sprint board."
The security director will have to be approved by U.S. agencies and will be the main contact between Sprint Nextel and the government. Regulators will also have oversight on all network-equipment and services purchased by the merged company.
If the acquisition is completed, SoftBank will own 70 percent of Sprint, the U.S.' third-largest carrier.
