SES – Intelsat Deal Set to Win Unconditional EU Approval

Satellite company SES is close to gaining unconditional EU antitrust approval for its $3.1 billion deal to buy rival Intelsat. SES is set to create a large rival for Elon Musk-owned Starlink.

Reuters reported the merger will win the EU’s approval, but noted its regulatory agency, the European Commission, is scheduled to publish a ruling by 10 June. The deal announced last year won unconditional clearance from the UK Competition and Markets Authority (CMA) on 29 May but is still being reviewed by the US Federal Communications Commission and the US Department of Justice.

The EU is ramping up its drive for strategic autonomy in the satellite sector to reduce reliance on Starlink’s broadband service. SES was among a consortium of satellite companies to strike a deal last year with the EC and European Space Agency to develop the IRIS2 constellation under a 12-year contract.

The merger of Intelsat and SES will give the combined company a fleet of more than 100 Geostationary Earth Orbit (GEO) and 26 Medium Earth Orbit (MEO) satellites compared to Starlink’s 5,800 birds. According to media reports, rival Eutelsat is speaking with investors to raise €1.5 billion to expand its low Earth orbit (LEO) satellite constellation. The French government and the UK government are among the potential investors.