T-Mobile said to near US national security nod for Sprint deal despite Huawei concerns

T-Mobile US Inc. is poised to win US national security approval for its takeover of Sprint Corp., according to three people familiar with the matter, clearing one of the regulatory barriers to the merger of the two wireless carriers.

US officials are on track to sign off on the deal as soon as next week, once they complete an agreement to address national security concerns over the combination, said the people, who said they weren’t authorised to speak publicly because the negotiations are confidential.

The approval by the Committee on Foreign Investment in the US, or Cfius, would move the No. 3 and No. 4 wireless providers in the US closer to consummating their US$26.5 billion tie-up. In addition to Cfius, the carriers need approval from the Federal Communications Commission and the Justice Department’s antitrust division.

The parties have an agreement in principle with Cfius, with final details still to be worked out, said one of the people. Timing of the approval could slip, but is still expected before the end of the year, the person said.

Critics of the deal have raised concerns about the ties between T-Mobile and Sprint’s parent companies and Chinese telecommunications giant Huawei Technologies Co., which is suspected by US officials of enabling espionage by Beijing. Huawei supplies Deutsche Telekom AG, which owns T-Mobile, and SoftBank Group Corp., the parent of Sprint.

Deutsche Telekom, based in Bonn, will own 42 per cent of the new company, while Tokyo-based SoftBank will own 27 per cent.