EU Commission approves SES acquisition of Intelsat without conditions

SES and Intelsat, both headquartered in Luxembourg, are major players in the global satellite communications sector and operate geostationary Earth orbit (GEO) satellite networks. While SES is firmly established in Europe, Intelsat's primary operations and administrative base are in the United States. Both companies deliver satellite capacity to clients in various industries. These include 'one-way' services for broadcasters in the media sector and 'two-way' capacity for sectors such as aviation, maritime, and government, either through third-party providers or directly.
The merger, according to the companies, is intended to enhance service coverage and network resilience, helping them better compete with the growing presence of low Earth orbit (LEO) satellite operators.
The Commission examined the merger's impact across global and EEA markets for both 'one-way' and 'two-way' satellite capacity, as well as potential downstream effects where the companies also provide satellite services directly. Its investigation found that sufficient competition would remain post-merger, with viable alternatives in the form of other GEO satellite providers and terrestrial technologies like fibre optics. In the 'two-way' market, the rise of LEO operators was also identified as a significant source of competitive pressure.
Importantly, the Commission determined that the newly merged entity would not be in a position to harm downstream rivals by limiting access to satellite capacity.
As a result, the Commission approved the acquisition without imposing any conditions, affirming that the merger will not hinder competition within the EEA.

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

Broadcast Pro

21 hours ago

• Broadcast Pro

Eutelsat announces $1.56bn capital increase

Eutelsat to execute $1.56bn capital increase by year-end to advance its strategic vision and long-term goals. Eutelsat has announced a Contemplated capital increase of $1.56 bn, anchored by key reference shareholders, to secure the execution of long-term strategic vision. Eutelsat is one of only two global operators with active commercial LEO (Low Earth Orbit) fleets and with a clear differentiation, being the only one exclusively focused on the B2B and B2G markets. While the global satellite connectivity market is expected to increase by 12% per annum between 2025 and 2029, the global LEO B2B connectivity market, valued at over $2.1bn in 2025, is expected to grow at a 28% CAGR through 2029 and multiply its current size fivefold over the next eight years, offering significant short to long-term growth potential. Eutelsat, the only GEO-LEO operator, and the only European operator with a fully operational LEO network, uniquely positioned to capture the momentum in the connectivity market. Eutelsat is contemplating raising $1.56bn of capital by way of (i) a reserved capital increase of €716m at a price per share of €4 corresponding to a +32% premium to the 30-day-VWAP of the shares as computed on Euronext Paris (the “Reserved Capital Increase”), which would be subscribed by the French State via the Agence des Participations de l’Etat (“APE”), Bharti Space Limited, CMA CGM, and Le Fonds Stratégique de Participations (“FSP”), and (ii) a rights issue of €634m (the “Rights Issue”), which would be subscribed for their rights by the above investors. Prior to the approval of the Reserved Capital Increase by Eutelsat’s shareholders, the APE will acquire the shares of the Company currently held by Bpifrance Participations, at a price per share equal to the subscription price of the Reserved Capital Increase. Consequently, the Board member representing Bpifrance Participations would be replaced by a representative of the French State. This capital increase would represent a pivotal step in Eutelsat’s strategic and financing roadmap, enabling the execution of its strategic vision. Coupled with a dedicated debt refinancing plan, this capital increase will reinforce the Company’s financial flexibility by accelerating its deleveraging and support investment in its existing Low Earth Orbit (LEO) capabilities and the future IRIS² constellation. On the back of the forthcoming capital increase, Eutelsat would reduce its leverage to c. 2.5x4 by year-end FY’2025-26, and would be well placed to tap debt capital markets, raise export credit financing and extend its bank debt maturities in order to fully cover the financing needs of its medium-term plan. Jean-François Fallacher, CEO of Eutelsat Group, said: “Eutelsat enters a new chapter, centered on the deployment of LEO, a major innovative and technological revolution for the Satellite industry. Thanks to its differentiated GEO-LEO positioning and global coverage, Eutelsat is ready to become a central player in the development of the European sovereign space of tomorrow. I welcome the contemplated capital increase which will give Eutelsat the requisite financing to implement its strategic roadmap. I am grateful for the support of the French State and the ongoing commitment of our other anchor shareholders – Bharti, CMA CGM and FSP and thank them for their confidence.” Eric Lombard, Minister for the Economy, Finance and Industrial and Digital Sovereignty, stated: 'The French State is proud to contribute to strengthening Eutelsat’s capital structure and support the company at pivotal stage of its development. This transaction reflects our strong commitment towards a major player in satellite connectivity — a strategic sector at the heart of Europe’s digital sovereignty — while fostering remarkable potential for technological innovation and sustainable economic growth. Through this transaction, France reaffirms its determination to build, together with the company and its European partners, a competitive, resilient, and sovereign space industry, particularly around the IRIS² programme, which is a key pillar of our strategic autonomy. 'We are convinced that the company’s solid fundamentals — its recognised expertise in geostationary orbit, its innovative solutions in low Earth orbit, its committed team, and its ambitious vision — are the foundations for lasting success. Eutelsat is opening a new chapter in its history, and the State will be fully present to help write it alongside the company.'

Broadcast Pro

4 days ago

• Broadcast Pro

Intelsat and iKOMG expand Faith broadcasting via Galaxy 19

To further enhance its service offering, Intelsat has recently introduced audience measurement capabilities to its upgraded VideoNow electronic program guide (EPG) on G-19. Intelsat has announced the expansion of its partnership with iKO Media Group (iKOMG), strengthening efforts to deliver faith-based content to global audiences through the “Faith Beyond” initiative. The collaboration is centred around Intelsat’s Galaxy 19 (G-19) satellite, a cornerstone of free-to-air broadcasting across North America. Faith Beyond, developed by iKOMG, offers a fully integrated distribution platform tailored for religious broadcasters aiming to expand their global footprint and engage with followers more deeply. The all-in-one solution includes satellite broadcasting, OTT streaming, cloud-native playout, live event support, and metadata management—all delivered via the high-capacity Galaxy 19 satellite. Rashmin Abhani, SVP Presale & Satellite Resource Management at iKOMG, said: 'Faith Beyond emphasises our commitment to empowering faith-based broadcasters with the tools they need to thrive in a competitive media landscape. Combined with the unmatched reach and reliability of Galaxy 19, Faith Beyond enables ministries to effortlessly expand and engage with their audience. Our collaboration with Intelsat is built on a shared dedication to excellence, accessibility and scalable growth, delivering solutions broadcasters can trust.' Rhys Morgan, RVP EMEA region, Intelsat, added: 'The iKOMG dedication to providing high-quality religious content globally aligns perfectly with Intelsat’s mission to support and grow new opportunities for content providers. This renewal underscores the enduring relevance of linear TV and free-to-air platforms such as Galaxy 19, demonstrating its continued importance for North American audience.' This deal uses Intelsat’s Galaxy 19 (G-19) satellite, a premier free-to-air, direct-to-home neighborhood that provides broadcasters with a powerful platform to reach diverse audiences across North America. G-19 provides 5.7m viewers with access to more than 110 channels, originating from 35 countries in over 20 languages. In addition to prominent faith-based programming, G-19 is home to premium entertainment, news and free-ad-support-streaming content. Intelsat recently announced audience measurement capabilities to its enhanced VideoNow electronic program guide (EPG) for G-19, representing a significant step toward ad-monetization in the direct-to-home (DTH) free-to-air (FTA) satellite video market. Unlike broadband-dependent services, G-19 is capable of reaching all households in North America, ensuring content is accessible regardless of internet reliability.

Broadcast Pro

5 days ago

• Broadcast Pro

ABS appoints Hussein Oteifa as MENA Managing Director

Based in Dubai, Hussein will drive ABS’s regional strategy and partner engagement across the region. Agility Beyond Space (ABS) has named Hussein Oteifa as its new Managing Director for the Middle East and North Africa (MENA) region. With more than three decades of experience in the satellite, telecommunications, and cloud industries, Oteifa brings a wealth of expertise in sales leadership, business development, and regional expansion. Throughout his career, Oteifa has spearheaded initiatives across geostationary (GEO) and medium Earth orbit (MEO) satellite services, government programmes, and enterprise connectivity solutions. His leadership has been instrumental in driving strategic growth and building long-term partnerships in the MENA region. Operating out of Dubai, Oteifa will lead ABS’s regional strategy and strengthen its partner engagement efforts. He will report directly to the Chief Commercial Officer, playing a key role in aligning the company’s regional operations with its global vision and supporting sustained growth across the MENA market.