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.


Reuters | Paris | Updated: 25-07-2022 12:31 IST | Created: 25-07-2022 12:22 IST
France's Eutelsat in talks over possible merger with UK satellite operator OneWeb
Eutelsat Image Credit: Wikipedia
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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.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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