TOKYO – In the priciest-ever overseas acquisition for a Japanese company, Softbank Corp. on Monday announced that it would buy about 70 percent of Sprint Nextel Corp., giving the U.S. carrier a much-needed cash infusion and boosting its chances to challenge giants Verizon and AT&T.

The $20.1 billion deal links a struggling U.S. mobile company, still trying to build up its high-speed next-generation network, with a Japanese wireless carrier noted for its history of risky – though so far fruitful – acquisitions.

In a joint news conference Monday with Sprint CEO Dan Hesse, Softbank’s billionaire founder Masayoshi Son said it was imperative to push overseas at a time when Japan’s own market, with its population declining and its economy stagnant, leaves little chance for growth.

Softbank has a net debt of about $10 billion and it needed several major loans to finance the deal, but the strong yen gives the company greater purchasing power. The corporation’s stock plummeted in recent days after rumors of the transaction leaked.

“When we make a challenge, usually risk comes along with it,” Son said. “I know it’s not an easy path to go business-wise.” But then Son noted Japan’s low birthrate and added, “However, without challenges into new markets we may face even bigger risks.”

The acquisition must still win approval from the U.S. Justice Department and the Federal Communications Commission.

Sprint must convince the FCC that the deal is in the public interest to overcome a 25 percent limit on foreign investment in telecommunication companies.

Sprint, the nation’s third-largest wireless carrier, likely will argue that the proposal would increase competition in the United States and help it compete more effectively with Verizon and AT&T. Those two companies both have roughly twice the subscribers that Sprint does, and Sprint so far has struggled to break the duopoly.

Sprint, now a consolidated subsidiary of Softbank, has a net debt of about $15 billion after a half-decade of losses.

At the Monday news conference, Hesse admitted the company was in shambles – at one point losing 1 million customers every quarter – when he became Sprint’s top executive in 2007.