Telecom Lead America: Sprint and SoftBank have received the green signal from the top US security agency.
The Committee on Foreign Investment in the United States (CFIUS) says there are no unresolved national security issues relating to the transaction between Sprint and SoftBank.
This will be a big blow to Dish Network which wants to buy Sprint, offering better deal to shareholders of the American telecom operator.
On Wednesday, Sprint and SoftBank said they received notice from the Committee on Foreign Investment in the United States (CFIUS) that it has completed its investigation of the proposed transaction between Sprint and SoftBank, and 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. The national security agreement is effective as of the date of CFIUS clearance, but will terminate in the event that the merger agreement between Sprint and SoftBank is terminated.
Based on the CFIUS clearance, Sprint and SoftBank expect that the team telecom agencies including the Department of Justice (including the Federal Bureau of Investigation) and the Department of Homeland Security, will notify the Federal Communications Commission that the agencies have completed their review of the transaction for national security, law enforcement and public safety concerns.
Upon receipt of notice from team telecom, the Federal Communications Commission will be free to complete its public interest review of the transaction. The Commission’s public interest review is ongoing.
