Sprint Nextel Corp. and SoftBank Corp. have announced they have received the necessary U.S. state regulatory approvals for SoftBank’s acquisition of Sprint. The California Public Utilities Commission has voted to approve the transaction, providing the final state approval needed for the deal.
The companies said they remain committed to completing their transaction on the terms previously disclosed. Sprint, the No. 3 U.S. mobile services provider, agreed in October to sell 70 percent of its shares to SoftBank for $20 billion. Sprint has since received a competing bid from Dish Network Corp., which said it would pay $25.5 billion in cash and stock. Dish has also cited security concerns regarding Japan-based SoftBank’s acquisition of Sprint.
Sprint and SoftBank said they anticipate closing on July 1, 2013, subject to satisfaction of closing conditions, including receipt of the remaining regulatory approvals. The companies continue to work closely with officials at the Federal Communications Commission and other Federal government agencies reviewing the transaction.
In its review of the transaction, the California Commission found that SoftBank’s investment in Sprint will lead to increased competition that “will benefit consumers and the telecommunications marketplace.”