Sprint/T-Mobile Merger Passes Major US Security Reviews
Sprint Corp. (NYSE: S) and T-Mobile US Inc. have passed another major milestone on the road to their $26.5 billion merger, with security review approvals from the Committee on Foreign Investment in the United States (CFIUS), the US Department of Justice, Department of Homeland Security and Department of Defense.
The departments have reviewed the merger in regard to national security, law enforcement, and public safety and now have "no objections" to the merger, T-Mobile US Inc. said in a statement.
"These approvals assure the strong partnership both companies have with the US government will continue with the New T-Mobile," T-Mobile CEO John Legere said.
The approvals are good news for the merger's prospects, after security concerns were raised last week over reports that linked the merger's review with T-mobile's parent company, Deutsche Telekom AG (NYSE: DT), and Sprint's majority owner, SoftBank Corp. , and their use of Huawei Technologies Co. Ltd . (See Anti-Huawei Forces Focus on Sprint/T-Mobile Deal and Eurobites: Deutsche Telekom Joins Caravan of Concern Over Huawei.)
The completion of the merger remains subject to further regulatory approvals and certain other customary closing conditions, and is expected to occur during the first half of 2019. (See T-Mobile, Sprint Agree to Merge.)
— Dan Jones, Mobile Editor, Light Reading