France's Eutelsat in talks over possible merger with UK satellite operator OneWeb

French satellite company Eutelsat said it was in talks with British rival OneWeb over a possible merger deal, which would help both companies challenge the likes of Elon Musk-owned SpaceX's Starlink and Amazon.com's Project Kuiper.

French satellite company Eutelsat said it was in talks with British rival OneWeb over a possible merger deal, which would help both companies challenge the likes of Elon Musk-owned SpaceX's Starlink and Amazon.com's Project Kuiper. "Following recent market rumors, Eutelsat Communications confirms that it has engaged in discussions with its co-shareholders in OneWeb regarding a potential all-share combination to create a global leader in connectivity with complementary GEO/LEO activities," said Eutelsat on Monday.

"Under the terms of the transaction being discussed, Eutelsat and OneWeb shareholders would each hold 50% of the combined group's shares," added Eutelsat. The transaction would strengthen the position of both companies in the race to build a constellation of low-orbit satellites, challenging SpaceX's Starlink and Amazon.com Inc's Project Kuiper.

The tie-up is also politically sensitive, as it would bring Indian billionaire Sunil Bharti Mittal, France, China and Britain together as shareholders of the combined entity.