The merger between T-Mobile and Sprint is now just a little bit closer to being a reality, as the two wireless firms have received regulatory approval for the merger from two important groups.
Both the Committee on Foreign Investment in the United States (CFIUS) and a group of defense agencies collectively known as Team Telecom granted regulatory approval of the merger.
T-Mobile US (NASDAQ: TMUS) and Sprint Corporation (NYSE: S) today announced that the companies have successfully received approval from the Committee on Foreign Investment in the United States (CFIUS) for their proposed merger transaction. Additionally, the U.S. Department of Justice, Department of Homeland Security, and Department of Defense, collectively referred to as Team Telecom, submitted a filing with the FCC that it has reviewed the transaction pertaining to potential national security, law enforcement, and public safety issues. Team Telecom confirmed it has no objections to the merger and has withdrawn its request to defer action on the transaction.
“We are pleased to achieve both of these important milestones in the journey to build the New T-Mobile. We are a step closer to offering customers a supercharged disruptor that will create jobs from day one and deliver a real alternative to fixed broadband while delivering the first broad and deep nationwide 5G network for the United States,” said John Legere, Chief Executive Officer of T-Mobile. “These approvals assure the strong partnership both companies have with the U.S. government will continue with the New T-Mobile. We look forward to continuing our discussions with the remaining regulatory agencies reviewing our transaction to share our story and subsequently achieve similar positive results.”
Approval from CFIUS was required, as T-Mobile’s major owner is Deutsche Telekom, which is based in Germany, while Sprint’s parent company SoftBank is located in Japan.
Team Telecom is made up of the U.S. Department of Justice, Department of Defense, and Department of Homeland Security.
The deal still requires approval from the Federal Communication Commission’s antitrust officials. T-Mobile says it expects final approval from the FCC in early 2019.