Huawei squared out of Softbank-Sprint deal

The US Committee on Foreign Investment cleared Softbank’s (9984.TYO) US$20.1 billion acquisition of Sprint Nextel (S.NYSE) on the condition that both companies limit their use of certain Chinese telecommunications equipment, Bloomberg reported, citing company statements Wednesday. Namely the agreement stipulates that the companies will limit their use of equipment from China’s Huawei Technologies, which has been deemed a security threat in the US. According to a Sprint filing, the company agreed that the US could press Sprint to remove certain equipment and approve future vendors. The deal needs one more level of clearance before proceeding.