UK competition watchdog launches inquiry into £5.4bn Inmarsat takeover
The UK’s competition watchdog has launched an inquiry into the £5.4bn takeover of UK satellite giant Inmarsat by a US rival Viasat.
The merger would fuse British and US expertise in the satellite space, a sector traditionally dominated by the States.
However, it has the potential to raise substantially reduce the amount of competition in the market, the Competition and Markets Authority (CMA) said today.
The CMA has invited onlookers to comment on the deal, ahead of launching a formal inquiry.
Inmarsat, which currently has 14 satellites in orbit, provides mobile satellite services that underpin email, internet and video conferencing, as well as in-flight wifi.
The company has plans to launch another seven satellites. It also supplied satellite services to the Ministry of Defence to improve ground communications for troops fighting in Afghanistan.
It comes amid concerns over fellow British satellite heavyweight OneWeb, which is undergoing buyout talks with French competitor Eutelsat.