Satellite company SES reportedly stands to gain unconditional European Union (EU) antitrust approval for its $3.1 billion deal to buy rival Intelsat, a move that would create a large rival for Elon Musk-owned Starlink.
Citing unnamed sources, 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 UKs 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, according to the news agency.
After a phase one review, the CMA found that the deal does not raise substantial competition concerns in the UK market, which ruled out a need for a more in-depth phase two investigation.
Reuters stated the EU is ramping up its drive for strategic autonomy in the satellite sector to reduce reliance on Starlink’s broadband service.
SES is among a consortium of satellite companies to strike a deal last year with the European Commission 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 Reuters.
Bloomberg reported 31 May rival Eutelsat is speaking with investors to raise €1.5 billion to expand its low Earth orbit (LEO) satellite constellation. The French government and UK government are among the potential investors.