Report: T-Mobile, Sprint edging closer to merger approval after Huawei compromise

T-Mobile and Sprint are close to getting a national security panel to sign off on their $26 billion merger after their parent companies agreed to consider cutting back on buying telecommunications equipment from Huawei, Reuters reported Friday.

According to the report, the Committee on Foreign Investment in the U.S. (CFIUS) could sign off on the deal as early next week, though the merger still needs approval from the Federal Communications Commission and the Department of Justice.

Neither Sprint nor T-Mobile use Huawei equipment, but they’re foreign parent companies do.

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According to Reuters, U.S. officials had been pressuring Deutsche Telekom AG, the German company that controls T-Mobile, to cut ties with Huawei. The company said on Friday that it was reviewing its choice of suppliers in light of the U.S. national security concerns about Huawei.

And Sprint parent company SoftBank said it would replace its Huawei equipment with products from Nokia and Ericsson, according to Nikkei.