The Federal Communications Commission on Friday cleared the way for the $21.6 billion purchase of Sprint by SoftBank of Japan. The approval ends months of posturing and uncertainty about the deal, as a rival, Dish Corp., had challenged the deal on national security grounds and tried to mount a rival takeover bid.
The F.C.C. said Friday that the deal would be positive for consumers since the two parties were not domestic competitors. An F.C.C. commissioner, Ajit Pai, praised the deal, saying it would help consumers “who stand to benefit from an invigorated company better able to deliver advanced wireless products and services.†He also noted that the deal helped companies, “As we’ve now shown that regulation need not impede access to the international financial markets and foreign capital.â€
Sprint shareholders voted to approve the transaction last month. In May, after granting some concessions, Sprint also won approval from a government panel, the Committee on Foreign Investment in the United States, which signed off on the deal after reviewing national security issues. Dish, in part, sought to drum up fears based on SoftBank’s ties to Chinese telecommunications equipment makers.
The F.C.C. order also covers Sprint’s proposed takeover of the broadband network Clearwire.
Sprint is also close to acquiring full control of Clearwire, whose wireless spectrum holdings will go toward building its own high-speed data network. Last month, Sprint sweetened its bid for the 50 percent of Clearwire that it did not own in an attempt to defeat a rival offer by Dish.
Clearwire shareholders will vote on Monday on the Sprint offer. Clearwire’s board has supported the improved offer from Sprint.
The companies hope to complete both the Sprint-Clearwire deal and the Sprint-SoftBank merger in July.
