Competition watchdog to probe $3.4bn Inmarsat takeover
The competition watchdog has opened an investigation into the proposed $3.4bn (£2.6bn) takeover of satellite communications giant Inmarsat by a consortium of private equity firms.
Read more: Inmarsat shareholders approve $3.4bn private equity takeover
Inmarsat earlier this year unveiled a buyout deal led by Apax Partners and Warburg Pincus, who tabled a cash offer of $7.21 per share.
But the Competition and Markets Authority (CMA) today said it will probe whether the deal will lessen competition in the market.
The inquiry threatens to derail the mammoth merger, which comes after a series of takeover offers fell through.
US satellite rival Echostar ditched its bid for Inmarsat after tabling an unsuccessful £3.2bn offer, while French firm Eutelsat also scrapped plans for a potential takeover.
Inmarsat suffered disappointing trading over the first quarter, posted a double-digit fall in profit due to rising costs.
But the firm has continued to build its market share ahead of the potential takeover, which is thought to be the second largest public-to-private deal ever in the UK.
The CMA has invited comments on the merger from any interest party by 29 July, and the deadline for its phase one decision is 10 September.
Read more: Inmarsat posts fall in first-quarter profit ahead of $3.4bn private equity takeover
Earlier this year the competition watchdog blocked a bumper merger between Sainsbury’s and Asda over concerns about price increases. The deal would have created the UK’s largest supermarket chain.
Main image credit: Getty