OneWeb and Eutelsat can join together as a pan-European satellite operator

OneWeb and Eutelsat can join together as a pan-European satellite operator

The British satellite operator OneWeb is a step away from the merger with the French satellite operator Eutelsat Communications SA, which will allow the creation of a pan-European operator, reporting to Bloomberg with reference to informed sources, who said that the deal could be concluded next week.

Sources claim that the value of OneWeb, in which the British government shares, will be estimated at about $3 billion or more. The market value of Eutelsat is about 2.4 billion. The Paris-based operator is supported by the French state investment company BPIFRance SA and is also a minority investor of OneWeb.

According to Bloomberg's informants, in a future deal, existing investors OneWeb will continue to own minority equity shares, including the British government and Bharti Airtel Ltd., led by Indian billionaire Sunil Mittal.

Last year Viasat Inc. bought $4 billion for Inmarsat Group Holdings Ltd for creating the world's largest company in the geostationary satellite market.

As Bloomberg noted, the OneWeb and Eutelsat deal would be a rare example of a merger between British and French companies, both supported by the state, so that would also show how much the two governments are involved in the telecommunications industry.