Eutelsat, OneWeb Brace To Unite To Compete SpaceX: Report

Eutelsat Communications SA ETCMY and OneWeb Ltd braced to combine in an all-share deal.
The deal valued the U.K. satellite operator at $3.4 billion, Bloomberg reports.
The initiative aimed to create a European champion to rival the likes of Tesla, Inc TSLA CEO Elon Musk’s SpaceX.
The deal offers Eutelsat a “unique position” on the market and has the potential to generate €1.5 billion ($1.53 billion) in increased revenue, investments, and cost synergies, the companies said.
Also Read: Here’s Why OneWeb Resorted To Elon Musk’s SpaceX For Satellite Launch
OneWeb shareholders will hold 50% of Eutelsat, which will continue to be listed in Paris and seek a London Stock Exchange listing.
OneWeb shareholders would receive 230 million newly issued Eutelsat shares representing 50% of the enlarged share capital.
The combined entity will have a €1.2 billion revenue and €0.7 billion EBITDA for fiscal 2022-2023.
The U.K. and French governments have stakes in OneWeb and Eutelsat, respectively.
The U.K. will continue to own a particular share, giving it certain veto rights over strategic decisions.
OneWeb will retain its branding and operate the low-orbit business of the combined group, which will have a primary listing in Paris.
Eutelsat Chair Dominique D’Hinnin Eis will become the Chairman of the combined entity, with his OneWeb counterpart Sunil Bharti Mittal as Co-chair.
Eutelsat CEO Eva Berneke will run the new group.
The new company will combine Eutelsat’s geostationary earth orbit satellites and OneWeb’s low orbit satellites.
Previously, Amazon.com Inc’s AMZN Kuiper Systems LLC sought to launch another 4,538 satellites intensifying rivalry with SpaceX.

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