While Starlink, the SpaceX service providing internet access via satellites in low orbit, continues to be deployed, a European competitor could emerge, thanks to a merger between the French Eutelsat and the British OneWeb.
Recently, rumors have been circulating on the web, evoking discussions between the two companies with a view to a merger. And this Monday, Eutelsat confirmed in a press release that it is indeed in negotiation with the other shareholders of OneWeb (Eutelsat having invested in this company).
Eutelsat and OneWeb: negotiations are underway
The goal is to create a world leader in connectivity, by combining the two companies. According to Eutelsat’s explanations, the combination of its activities with those of OneWeb would create “the first multi-orbit satellite operator to offer integrated GEO (ed., geostationary orbit) and LEO (ed., low Earth orbit) solutions”.
“OneWeb is one of only two global LEO networks and has seen strong momentum in recent months, with the service expected to be fully rolled out in 2023. The transaction would represent a logical continuation in the successful partnership between Eutelsat and OneWeb, started with Eutelsat’s equity investment in OneWeb in April 2021 and deepened with the global distribution agreement announced in March 2022”adds the French company.
Currently, Eutelsat owns 23% of the shares of OneWeb. As part of the discussed agreement, shareholders of Eutelsat and OneWeb would each hold 50% of the shares of the combined group. For the moment, there is no guarantee that these negotiations will lead to a signature.
In any case, the creation of a European competitor to Elon Musk’s constellation of satellites was a wish expressed by Emmanuel Macron in February. And it is possible that this will become a reality thanks to this proposed merger between Eutelsat and OneWeb.
An agreement that is not yet sure to pass
However, as Bloomberg notes, the deal will still face many hurdles. And as a Reuters article notes, it’s a politically sensitive rapprochement, given that the combination of Eutelsat and OneWeb would bring together France (of which the investment bank BPI France is the main shareholder of Eutelsat), the United Kingdom, China, as well as the Indian billionaire Sunil Bharti Mittal within the shareholders.
“The transaction would be structured as a contribution, by OneWeb shareholders, of their stake in OneWeb to Eutelsat, in exchange for newly issued Eutelsat shares. Any combination would be subject to, among other conditions, the required prior approval by the majority of Eutelsat shareholders and the obtaining of all competition and regulatory authorizations (including foreign investment )”writes Eutelsat on this subject.
Source: Presse-Citron
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