Wednesday, May 29, 2013

Sprint + Softbank -- No Unresolved National Security Concerns

The Committee on Foreign Investment in the United States (CFIUS) completed its investigation of the proposed transaction between Sprint and SoftBank and determined that there are no unresolved national security issues relating to the transaction.

As part of this aspect of the transaction’s clearance, Sprint and SoftBank have entered into a National Security Agreement with the U.S. government.

Details of the agreement were not made public but it is expected to cover the exclusion of telecom infrastructure from Huawei and ZTE in the merged company's U.S. network, including Clearwire. The National Security Agreement will terminate in the event that the merger between Sprint and SoftBank is not completed.

The FCC is still conducting its public interest review of the proposed merger.  Sprint shareholders must also vote on the deal.  The companies believe the deal is on track for consummation in July 2013.