Viasat Inc.’s $4 Billion takeover of Inmarsat Group Holdings Ltd. to create the world’s biggest geostationary satellite company has been provisionally cleared by the UK’s antitrust watchdog.
(Bloomberg) — Viasat Inc.’s $4 Billion takeover of Inmarsat Group Holdings Ltd. to create the world’s biggest geostationary satellite company has been provisionally cleared by the UK’s antitrust watchdog.
The Competition and Markets Authority said it took an initial view that the deal wouldn’t substantially reduce competition in the in-flight Wifi market, according to a statement published Wednesday after an in-depth review.
Viasat, based in Carlsbad, California, said it would acquire London-based Inmarsat for $850 million in cash and $3.1 billion in stock in November 2021. The companies are betting on surging demand for internet access from consumers in the sky, and have also teamed up to fend off challenges from low-orbit satellite providers like Elon Musk’s Starlink.
“While Viasat and Inmarsat compete closely, the evidence suggests that the merged company will face significant competition in the coming years – from both emerging players like Starlink and from established firms like Intelsat and Panasonic,” Richard Feasey, chair of the independent inquiry group carrying out the Phase 2 investigation, said.
In a joint statement, the companies welcomed the CMA announcement, calling it an “important milestone in the regulatory process that acknowledges the strong evidence of the highly competitive nature of the global market for satellite communications.”
The European Commission opened an in-depth investigation into the deal this month after it flagged similar concerns in the services the firms offer in in-flight connectivity services to commercial airlines. The regulator set a June 29 deadline to rule on deal.
The CMA will now consult on the findings and consider responses ahead of issuing its final report on March 30.
–With assistance from Thomas Seal.
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