EU Set to Approve SES’s $3.1 Billion Takeover of Intelsat

Luxembourg-based satellite operator SES is on track to receive unconditional approval from the European Union for its $3.1 billion acquisition of U.S. rival Intelsat, according to sources familiar with the matter, per Reuters. The deal marks a significant consolidation move within the European space communications sector, aimed at creating a stronger competitor to U.S.-based satellite internet giants such as Elon Musk’s Starlink and Amazon’s Project Kuiper.

The European Commission is expected to deliver its final decision on the transaction by June 10. Neither SES nor the Commission provided comments regarding the ongoing review, Reuters reported.

This strategic merger would bolster Europe’s presence in the increasingly competitive satellite broadband market. The combined entity is set to operate over 100 geostationary Earth orbit (GEO) satellites and 26 medium Earth orbit (MEO) satellites. In contrast, Starlink, operated by Musk’s SpaceX, currently maintains a network of around 5,800 low Earth orbit (LEO) satellites.

According to Reuters, SES’s acquisition comes amid broader efforts by the European Union to achieve greater technological independence. Brussels has placed increasing emphasis on developing homegrown capabilities to reduce reliance on non-EU space infrastructure and services, a priority that has gained momentum in recent years.

The deal recently cleared its first major regulatory hurdle after receiving unconditional approval from the UK’s competition watchdog last week. It remains under review by both the U.S. Federal Communications Commission and the Department of Justice.

By joining forces with Intelsat, SES aims to enhance its capacity, geographic reach, and service offerings at a time when demand for high-speed satellite internet is accelerating globally.

Related: UK Regulators Approve $3.1 Billion SES-Intelsat Merger, Paving Way for Satellite Industry Shake-Up

Source: Reuters