{"id":1569703,"date":"2022-07-25T11:08:12","date_gmt":"2022-07-25T15:08:12","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1569703"},"modified":"2022-07-25T11:08:21","modified_gmt":"2022-07-25T15:08:21","slug":"eutelsat-in-talks-on-possible-all-share-merger-with-uks-oneweb","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/eutelsat-in-talks-on-possible-all-share-merger-with-uks-oneweb\/","title":{"rendered":"Eutelsat in talks on possible all-share merger with UK\u2019s OneWeb"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">20<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Feutelsat-in-talks-on-possible-all-share-merger-with-uks-oneweb%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1569703&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>By Dominique Vidalon and Mathieu Rosemain<\/p>\n<p>PARIS (Reuters) -French satellite company Eutelsat said it was in talks over a possible all-share merger with British rival OneWeb, which could help both companies challenge the likes of Elon Musk-owned SpaceX\u2019s Starlink and Amazon.com\u2019s Project Kuiper.<\/p>\n<p>Eutelsat\u2019s statement on Monday came after two sources close to the negotiations told Reuters at the weekend it was poised to buy OneWeb, which was valued at $3.4 billion in its most recent funding round and in which Eutelsat already has a 23% stake.<\/p>\n<p>\u201cFollowing recent market rumours, Eutelsat Communications confirms that it has engaged in discussions with its co-shareholders in OneWeb regarding a potential all-share combination to create a global leader in connectivity,\u201d Eutelsat said. OneWeb declined to comment.<\/p>\n<p>Eutelsat shares fell 17% to 8.65 euros by 0845 GMT.<\/p>\n<p>\u201cInvestors don\u2019t appreciate the uncertainty, and if ETL (Eutelsat) is in a merger of equals with OneWeb, then ETL investors get a share in a new entity where the other half is pretty much an unknown to them \u2026 So I understand why ETL shares are down on the news,\u201d said one trader in London.<\/p>\n<p>The talks are centred on a transaction that would result in Eutelsat and OneWeb shareholders each holding 50% of the new, combined entity. There were no assurances that the talks would result in any final agreement, Eutelsat said.<\/p>\n<p>POLITICALLY SENSITIVE  <\/p>\n<p>A deal would strengthen both companies in the race to build a constellation of low-orbit satellites. But a tie-up would be politically sensitive, as it would bring together Indian billionaire Sunil Bharti Mittal, along with France, China and Britain as shareholders of the combined group.<\/p>\n<p>\u201cFrom an anti-trust point of view, this deal is likely to be scrutinised heavily and will also likely need political consensus from both the UK and EU at a time when the UK is choosing a new Prime Minister,\u201d Credit Suisse said in a note.<\/p>\n<p>Eutelsat estimated the \u201csatellite connectivity\u201d market to be worth around $16 billion by 2030.<\/p>\n<p>Demand for satellite launches is expected to accelerate after recent sanctions have sidelined the Russian space launch industry, and giant satellite constellations could offer a new channel to beam broadband Internet from space.<\/p>\n<p>Eutelsat\u2019s biggest shareholder is France\u2019s state-owned investment bank Bpifrance, with a 20% stake. Its fourth-largest shareholder is China\u2019s sovereign fund China Investment Corp, according to Refinitiv data.<\/p>\n<p>OneWeb was rescued from bankruptcy by the British government and India\u2019s Bharti Global. A merger would leave the British government with a minority stake in the merged business, one source close to the matter said.<\/p>\n<p>Britain would retain special rights over OneWeb after the deal, another source said, including a veto over sales to clients deemed risky for security reasons, and a veto over a change in the location of its headquarters.<\/p>\n<p>These special rights would also entail a veto over business relations that may compromise the so-called \u201cFive Eyes\u201d intelligence alliance, comprising Australia, Canada, New Zealand, Britain and the United States, and a say on the supply chain and launch decisions.<\/p>\n<p> (Reporting by Dominique Vidalon and Mathieu Rosemain; Additional reporting by Joice Alves in London; Editing by Silvia Aloisi and David Holmes)<\/p>\n<p><a href=\"https:\/\/www.oann.com\/?attachment_id=2730134\"><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/07\/tagreuters.com2022binary_LYNXMPEI6O08K-VIEWIMAGE.jpg\" alt=\"tagreuters.com2022binary_LYNXMPEI6O08K-VIEWIMAGE\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Dominique Vidalon and Mathieu Rosemain PARIS (Reuters) -French satellite company Eutelsat said it was in talks over a possible all-share merger with British rival OneWeb, which could help both<\/p>\n","protected":false},"author":66,"featured_media":2315279,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1569703","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1569703","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/66"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1569703"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1569703\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1569703"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1569703"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1569703"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}