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The European Commission approved SES's acquisition of Intelsat, envisioning no competition issues arising from the transaction.
EC has approved SES’s €2.8bn acquisition of Intelsat. (Photo: Rini. com/Shutterstock)
The European Commission (EC) has given the green light to SES’s acquisition of Intelsat Holdings, confirming no competition concerns under the EU Merger Regulation within the European Economic Area (EEA). Headquartered in Luxembourg, both companies operate geostationary Earth orbit (GEO) satellites, with Intelsat’s primary operations based in the US. They supply satellite capacity to broadcasters and various industries, including aviation and maritime, while also offering their own satellite services.
The €2.8bn deal, announced in April last year, aims to enhance coverage and competitiveness against emerging low Earth orbit satellite operators. The Commission’s investigation focused on the implications for ‘one-way’ and ‘two-way’ satellite capacity markets, both globally and within the EEA. It also examined potential impacts from the vertical integration of satellite capacity supply and services.
The probe concluded that post-merger, sufficient competition will persist from other market players after SES’ acquisition of Intelsat, particularly from terrestrial options like fibre and low Earth orbit (LEO) operators. The Commission determined the merger would not enable the entity to limit competitors’ access to satellite capacity, leading to an unconditional approval.
“With a combined fleet of more than 100 [GEO] and 26 Medium Earth Orbit (MEO) satellites, the combined SES will benefit from enhanced coverage, greater network resiliency, complementary spectrum (C-, Ku-, Ka-, Military Ka-, X-band, and Ultra High Frequency) rights, and improved service delivery utilising an expanded network of ground segment assets,” said the two companies. “By end-2026, 8 new GEO (including 6 software-defined) satellites and 7 new MEO (O3b mPOWER) satellites are expected to be launched, adding further redundancy and additional growth capacity.”
UK CMA also approves SES-Intelsat deal after review
The UK’s Competition and Markets Authority (CMA) has also approved the acquisition after a Phase I investigation. The CMA concluded that the merger does not pose a substantial lessening of competition in broadband in-flight connectivity services for commercial airlines globally and in Europe, including the UK.
The CMA’s analysis indicates that the merged entity will face significant competition from integrated companies like Starlink and Viasat Inmarsat, with Amazon Kuiper’s entry expected to intensify this competition further. Thus, the merger does not present a realistic prospect of input foreclosure in the broadband IFC market.
“In a fast-moving and competitive satellite communication industry, this transaction expands our multi-orbit space network, spectrum portfolio, ground infrastructure around the world, go-to-market capabilities, managed service solutions, and financial profile,” said SES’ CEO, Adel Al-Saleh, in April last year. “Going forward, customers will benefit from a more competitive portfolio of solutions with end-to-end offerings in valuable Government and Mobility segments, combined with value-added, efficient, and reliable offerings for Fixed Data and Media customers.”
Read more: Amazon advances Kuiper internet network with first satellite launch
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