NEW YORK (TheStreet) -- Shares of Softbank (SFTBF) are up 1.50% to $74.40 after it was reported that the company reached a basic agreement to acquire T-Mobile US (TMUS) from German parent Deutsche Telecom (DTEGY), paving the way for a merger between the fourth-ranked U.S. mobile carrier and rival Sprint (S), the Nikkei reports.
The two sides are still working out details, and the deal needs clearance from U.S. regulators.
Shares of T-Mobile US are 1.46% to $33.36.
Together, third-ranked Sprint, acquired by SoftBank last year, and T-Mobile have some 100 million U.S. subscribers, putting their combined customer base on par with those of Verizon Wireless (VZ) and AT&T (T), the Nikkei said.
The Japanese carrier plans to buy more than 50% of T-Mobile shares through Sprint from Deutsche Telekom, which owns a roughly 67% interest. SoftBank will pay cash and use stock swaps to cover the estimated purchase cost of more than 1.7 trillion yen, or $16 billion, the Nikkei added.