The £5.4 billion takeover of UK satellite giant Inmarsat by US firm Viasat has been given the provisional green light by Britain’s competition watchdog as it said the merged firm would be “challenged” in the rapidly expanding sector.
The Competition and Markets Authority (CMA) said that while the companies compete closely in the aviation sector – specifically in the supply of satellite connections for onboard wifi – the deal does not substantially reduce competition for services provided on flights used by UK customers.
It said the merged company will likely face “significant competition” from both emerging and established players as the sector expands.
Following a four-month in-depth phase of the probe, the CMA said the combined firm would be “challenged” by the likes of SpaceX’s new competitor Starlink, as well as established firms such as Intelsat and Panasonic, over the coming years.
The satellite sector has seen a wave of investment and acquisitional activity…