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CMA Launches Probe Into Viasat-Inmarsat Merger

Key Highlights

  • The UK’s competition and markets authority (CMA) launches a probe into the Viasat-Inmarsat merger.
  • The combination will enable a global Ka-band footprint and will be augmented by L-band assets for “all-weather resilience” and narrowband IoT connectivity.

The CMA of the UK has launched a probe into the Viasat-Inmarsat merger. Initially, Viasat declared its intention to acquire Inmarsat for $7.3 billion in November 2021. To no surprise, the proposal attracted great attention.

The merged entities would operate a fleet of 19 satellites that are in service right now. An additional 10 spacecraft are under construction and planned for launch within three years.

The satellites of the merged entity will enable a global Ka-band footprint and will be augmented by L-band assets for “all-weather resilience” and narrowband IoT connectivity.

Critics of the deal warn that it will consolidate the market and reduce competition. Meanwhile, Proponents trust the Viasat-Inmarsat merger will help the company to remain competitive against rivals with large resources.

Rajeev Suri, CEO of Inmarsat, said that the two companies together would create a new global player with the scale and scope to help shape the future of a dynamic and growing industry.

The combination will create a strong future for Inmarsat and be well-positioned to offer a more fantastic choice for customers worldwide, an enhanced scope for partners, and new opportunities for employees. The industrial logic is compelling and ensures that the UK has a sustainable and robust presence in the critical space sector for the long term.

The CMA has declared the launch of its Viasat-Inmarsat Merger inquiry now. The deadline for the CMA to publicize its decision on whether to refer the merger for a ‘Phase 2’ investigation is 5th October 2022.

The European Commission announced its investigation following requests from 13 countries last month.

The Commission will now inquire Viasat to notify the transaction. Viasat cannot implement the transaction prior to notifying and obtaining clearance from the Commission.

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