Eutelsat begins negotiations for a possible merger with OneWeb

MADRID, 25 (EUROPE PRESS)

Eutelsat Communications has confirmed this Monday the start of talks about a possible merger with OneWeb, which would create a “world leader” in satellite connectivity.

Specifically, through a statement, it has stated that the entity resulting from the business combination of both companies would be the “first operator” of satellites in different orbits, both geostationary and low altitude.

In this way, it would be in a “unique” position when dealing with a “booming” satellite connectivity market, which will reach 16,000 million dollars (15,600 million euros at current exchange rates) in 2030.

OneWeb is one of only two global operators of global low-orbiting satellites and has seen “strong momentum” in recent months.

The French company points out that this merger would be a “logical step” after it began investing in OneWeb in April 2021. It currently owns 23% of OneWeb’s share capital. In turn, the French State has a 20% stake in Eutelsat through Bpifrance.

Under the terms of the transaction currently being discussed, the shareholders of each company would have an equal 50% stake in the new resulting company.

Eutelsat points out that the possible merger is not yet assured and that, if an agreement is reached, it would be subject to the approval of the shareholders, as well as different regulatory and antitrust authorities.

Eutelsat is one of the main satellite operators in the world that offers services to the audiovisual, data and internet markets, among others.