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Japan's Softbank to buy 70% stake in Sprint Nextel

16 October 2012 Last updated at 06:53 BST

The Japanese mobile phone operator Softbank is set to spend more than $20bn (£12.4bn) in order to buy a 70% stake in struggling US mobile carrier Sprint Nextel.

The deal will be the biggest ever overseas buy-up by a Japanese company.

Sprint Nextel is the number three mobile carrier in the US and the acquisition will see Japan's Softbank become one of the world's top three mobile phone operators.

Ajay Sunder, senior director of Frost & Sullivan's ICT practice in Asia Pacific, told the BBC's Asia Business Report that the deal was likely to benefit both firms.