The British competition watchdog is considering if it is or may be the case that the cash and stock deal announced in November 2021, if executed, will lead to creating a relevant merger situation under the merger provisions of the Enterprise Act 2002
Inmarsat is a UK-based mobile satellite communications services provider. (Credit: Inmarsat Global Limited)
The UK Competition and Markets Authority (CMA) said that it plans to launch a phase 1 investigation into the previously announced $7.3bn acquisition of British mobile satellite communications services provider Inmarsat by Viasat.
The British competition watchdog is considering if it is or may be the case that the deal if executed, will lead to creating a relevant merger situation under the merger provisions of the Enterprise Act 2002. In case of this, the regulator will probe if this could result in a considerable reduction of competition within any market or markets in the UK for either goods or services.
In order to help with its assessment, the CMA is seeking comments on the deal from any interested party. The deadline for submitting the comments is 15 August 2022.
The stock and cash deal was announced by Viasat and Inmarsat in November 2021.
Viasat is a US-based publicly-listed communications company. It is offering Inmarsat’s shareholders $850m in cash and around 46.36 million of its newly issued shares, valued at $3.1bn.
Inmarsat owns and operates a portfolio of mobile telecommunications satellite networks. The company’s multi-layered, global spectrum portfolio covers L-band, Ka-band, and S-band.
Through the acquisition, Viasat expects to form a major global communications innovator.
Post-acquisition, the enlarged entity will plan to integrate the spectrum, terrestrial, and satellite assets of Viasat and Inmarsat into a global high-capacity hybrid space and terrestrial network.
The combined entity is expected to have a fleet of 19 operating satellites in operation. An additional 10 spacecraft are under construction and intended for launch within the next three years, said Viasat at the time of announcing the deal.
Last month, Viasat’s stockholders approved the proposed acquisition.
The company said that the deal remains subject to regulatory approvals and clearances as well as the meeting of other conditions. Following all these, the transaction is expected to close in the latter half of this year, said the communications company.