Remember that merger between Japan's SoftBank and third-place U.S. carrier Sprint? Looks like it's going to hit a speed bump or two along the way, now that the Federal government is taking a closer look at it.
The Verge is reporting that the U.S. Justice Department has asked the Federal Communications Commission (FCC) to delay approval on the merger between Sprint and Japanese giant SoftBank, a deal first announced back in October.
According to Bloomberg, the government needs more time to assess the proposal and is "currently reviewing this matter for any national security, law enforcement, and public safety issues" along with the FBI and Department of Homeland Security.
While it's entirely likely that the merger will continue without a problem once the various Federal agencies have completed their assessments, the move appears to be a mandatory one whenever a foreign company takes ownership of a U.S. business.
Surprisingly, Sprint's competitors have not formally opposed the deal, although AT&T did note that the deal would give "Japan's largest wireless companies control of significantly more U.S. wireless spectrum than any other company."
Sprint and SoftBank are racing against time to beef up the U.S. carrier's 4G LTE network, and initially hoped to finalize their deal by the middle of this year. Depending on the poky speed the Feds decide to move, that date could be pushed later, leaving Sprint without the $20.8 billion that comes along with the acquisition.
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