Sprint and T-Mobile Get Another Step Closer Towards Proposed $26.5 Billion Merger
December 19, 2018
Wireless carriers Sprint and T-Mobile cleared a regulatory hurdle Tuesday on the way towards a proposed $26.5 billion merger.
The Committee on Foreign Investment in the United States (CFIUS), which reviews the potential national security effects of foreign investments, gave the green light for the third- and fourth-largest carriers in the country to become a single provider.
The move overrides concerns about Sprint and T-Mobile’s connections to Chinese telecommunications company Huawei, previously labeled a national security threat by U.S. lawmakers. According to the New York Times, the corporations that own Sprint and T-Mobile are customers of Huawei, but may be distancing themselves following global concern over Huawei’s security.
Along with the approval from CFIUS, the U.S. Departments of Justice, Homeland Security, and Defense also withdrew their joint request to defer the merger, T-Mobile announced Tuesday.
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