News

Eutelsat has set a date for a shareholder vote to finalize the acquisition of OneWeb. The French operator of geostationary satellites aims to complete the all-share deal for the British low Earth orbit (LEO) broadband network after obtaining approval from its shareholders. The meeting is scheduled for September 28, and if the transaction is approved, Eutelsat will proceed with the merger.

As of March 31, top shareholders representing 49.4% of Eutelsat have already expressed their support for the plan. OneWeb’s shareholders have previously approved the merger, which was announced a year ago with a valuation of .4 billion.

Eutelsat has obtained all necessary regulatory clearances for the deal, including from foreign investment authorities. Unlike Viasat’s acquisition of Inmarsat, European regulators did not raise concerns about the OneWeb deal potentially leading to higher prices and reduced quality in satellite services.

Eutelsat currently owns a 23% stake in OneWeb, which is part of its efforts to expand into connectivity services as its legacy satellite TV business declines. The merger would allow for the combined fleet to utilize geostationary satellites for increased capacity in specific regions and leverage smaller LEO satellites for lower-latency services globally.

OneWeb has already deployed its constellation and currently operates 634 satellites in LEO. The company expects to provide full coverage from its constellation by the end of this year and is collaborating with Eutelsat on a billion second-generation network set to enter service by early 2028.

A successful merger would enable the development of joint growth plans, including the selection of a manufacturer for OneWeb’s second generation. However, it may complicate Eutelsat’s ambitions to participate in Europe’s planned multi-orbit connectivity constellation known as Infrastructure for Resilience, Interconnectivity and Security by Satellite (IRIS²).

The British government holds a stake in OneWeb and would retain priority voting rights following the merger. There have been concerns raised about potential conflicts of interest, given the UK’s departure from the European Union. Eutelsat assures that OneWeb would be sufficiently protected if the merger proceeds.

Eutelsat anticipates that its entry into the connectivity market will drive the company’s growth, reversing the trend of annual sales decline experienced over the past seven years.

The post Eutelsat Shareholders to Vote on OneWeb Takeover appeared first on satProviders.