UK regulator backs Viasat Inmarsat merger

The UK regulator has given the green light to the $7.3bn merger between rivals Viasat and Inmarsat, it was confirmed on Tuesday.

The Competition and Markets Authority said that following a Phase 2 inquiry, it had found that while the two satellite communication firms competed closely, the merged company would be “challenged” by emerging and established competitors in coming years.

The satellite communication sector was expanding, it added, “a trend that is expected to continue”.

Richard Feasey, chair of the inquiry group that carried out the Phase 2 probe, said: “The satellite communication sector is evolving at a rapid pace: new companies are entering the market, more satellites are being launched into space and firms are exploring and entering into new commercial deals.

“All the evidence has shown that the sector will continue to grow as the demand for satellite connectivity increases.”

California-based Viasat, which is listed on Nasdaq, agreed to take over Britain’s Inmarsat in November 2021. The two companies supply businesses with satellite connectivity that enables services such as internet, video calling and email, including for use on airplanes, where they compete particularly closely.

In a joint statement, the two companies said the decision was an “important milestone” towards the deal’s completion.

Mark Dankberg, chief executive of Viasat, added: “The decision validates our position that the combination of our two companies will strengthen competition in a dynamic market that continues to attract substantial levels of investment and enables us to offer better services to our customers.”