U.S. satellite giant Viasat's $7.3 billion takeover of UK rival Inmarsat faces QouteCoin
New York City: Viasat, a U.S. satellite company, is buying UK rival Inmarsat for 7.3 billion euros ($7.6 billion) in an all-stock deal that could face competition scrutiny from the United Kingdom’s Competition and Markets Authority (CMA).
Viasat has three months to put forward proposals to address any competition concerns before the Competition and Markets Authority (CMA) issues a final decision in June.
Viasat has three months to put forward proposals to address any competition concerns before the Competition and Markets Authority (CMA) issues a final decision in June.
The move follows a preliminary ruling last year that concluded Inmarsat had lost out on contracts with British Airways, Virgin Atlantic and Air Canada because of its dual listing on the London Stock Exchange and NASDAQ stock exchange.
Viasat is expected to submit its own bid for Inmarsat if it isn’t bought by Huawei Technologies Co Ltd, which is chasing an uncontested takeover after failing twice before due to regulatory hurdles.
The CMA said the transaction would reduce competition for the supply of broadband services to small aircraft in parts of northern Europe, as well as for maritime communications services.
The CMA said the transaction would reduce competition for the supply of broadband services to small aircraft in parts of northern Europe, as well as for maritime communications services.
The U.K. competition regulator gave its approval to Viasat’s takeover bid after it was satisfied that Inmarsat had not accepted any “unfair” terms in relation to the deal.
Viasat shares fell about 1% in early trading on Thursday. Inmarsat was up 1%.
Viasat shares fell about 1% in early trading on Thursday. Inmarsat was up 1%.
The CMA said the transaction would reduce competition for the supply of broadband services to small aircraft in parts of northern Europe. Viasat has said it will challenge all aspects of the decision, which could take months or years.
The UK competition waatchdog is examining the proposed deal.
The CMA is an independent body that looks at mergers and acquisitions to determine whether they are likely to harm competition. It has not yet made a decision on the deal, but it will do so in June.
The Competition and Markets Authority is also reviewing Viasat’s proposed takeover of Inmarsat as part of its investigation into whether there are any anti-competitive effects from Viasat’s purchase of AirFrancesa airlines services provider Avianca Holdings SA (AVH).
