France Blocks Eutelsat from Selling Ground Antenna Business

The French government blocked Eutelsat from selling its ground antenna business to private equity player EQT. The government said that the business is a strategic asset that can help the company compete with Starlink.

Eutelsat announced the deal, which was struck in December 2024, would not go ahead, as all conditions precedent had not been satisfied. The satellite player stated it was in line to receive net proceeds in the region of €550 million.

The country’s finance minister, Roland Lescure, shed more light on the decision, stating the government had directly intervened. Speaking to TF1 television, Lescure said he decided not to allow Eutelsat, a big satellite company, to sell its ground-based antenna that communicates with satellites.

He added that the antennas are used for civil communication and military communication, and Eutelsat is the only European competitor to Starlink. “It’s obviously a strategic asset, so I said no,” added Lecsure. The government is Eutelsat’s largest shareholder, with a 29.6% stake, while the UK also holds a share after selling OneWeb to the French company in 2023.

When announcing the sale, Eutelsat said it would use the funds to raise capital and reduce debt. EQT was set to acquire an 80% stake in the entity, while Eutelsat would retain the remaining share and leaseback the antennas. EQT confirmed the deal was off in its own statement and added it would pursue investments in satellite ground infrastructure elsewhere.