PARIS, July 25 — 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’s Starlink and Amazon.com’s Project Kuiper.
“Following 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,” Eutelsat said. OneWeb declined to comment.“Investors don’t appreciate the uncertainty, and if ETL 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 the...
“From 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,” Credit Suisse said in a note.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.
OneWeb was rescued from bankruptcy by the British government and India’s Bharti Global. A merger would leave the British government with a minority stake in the merged business, one source close to the matter said.
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