In Japan, a government advisory committee called for the breakup of Nippon Telephone and Telegraph Company, the largest telephone company in the world, so it would be two local phone companies and one long-distance provider.

A. In Japan, a government advisory committee called for the breakup of Nippon Telephone and Telegraph Company, the largest telephone company in the world, so it would be
B. The breakup of the world's largest telephone company, Nippon Telephone and Telegraph Company, was called for by a government advisory committee in Japan, so it would be
C. A government advisory committee in Japan called for the breakup of Nippon Telephone and Telegraph Company, the world's largest telephone company, into
D. The breakup of Nippon Telephone and Telegraph Company, the world's largest telephone company, was called for by a government advisory committee in Japan, so it would be
E. Called for by a government advisory committee, the breakup of Nippon Telephone and Telegraph Company in Japan, the world's largest telephone company, was to be into

According to Manhattan GMAT, "so" in A,B and D is wrong because the second clause is dependent on the first.Therefore, "so" is an inappropiate conjunction. Could someone explain, please?
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When two independent clauses with verbs of their own are presented, they have to be conjugated by a coordinate conjunction such as and, but, so etc (remember the fanboys?). Separating them with just j a comma renders them as run-ons. In this case, 'called for' and 'would be’ are the two verbs of their clauses with just a comma in between. Hence choices A, B and D are faulty. E is too awkward; C is crisp and right
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The second part, about the two local companies and one long-distance provider, describes the parts the company is supposed to be broken into. C describes this clearly: "committee . . . called for the breakup of NTTC . . . into two local phone companies and one long-distance provider."

The choices using "so" almost make part 2 into an independent clause, as Tim describes in our forum. Think of other sentences that use "so" to link. "My boss told me to send the email, so I sent it." "I didn't eat your sandwich, so stop bothering me." The part after "so" can always stand alone as its own sentence (this is the meaning of an independent clause.)

Let's look at the second clause as a stand-alone sentence. "The committee called for the breakup of NTTC. So it would be two local phone companies and one long-distance provider." The use of would is awkward if this part doesn't depend on the other. Why not "it will be"? If we put in the right word ("will"), the use of "so" makes it seem that because the committee called for the breakup, the second sentence *will* happen. In the credited response, we are told that the committee called for the breakup of the company into several parts, with no prediction of what will happen. This is a better description of the situation.

I hope this helps! Let me know if I can make any of this clearer.
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Thanks DmitryFarber

Very clear explanation. C is the right answer. Independent clause , FANBOYS Independent Clause
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In Japan, a government advisory committee called for the breakup of Nippon Telephone and Telegraph Company, the largest telephone company in the world, so it would be two local phone companies and one long-distance provider.

Hi guys, I might be a little too late asking this question (almost 2 years) on this thread , but I still try my luck, as I am not understanding one of the comment from Daagh.

@Daagh, As you mentioned, all independent clauses should have "Fanboys" coordinating conjugations joining them. But then in this question, the two independent clauses
1) In Japan, a government advisory committee called for the breakup of Nippon Telephone and Telegraph Company, the largest telephone company in the world
2) it would be two local phone companies and one long-distance provider.
already have a "so" joining them. Right? It doesn't seem to be a run-on to me. Can you help me understand why this is a case of run-on error?