Viasat’s acquisition of Inmarsat gets green light
The conclusion of the CMA’s Phase II review has confirmed its provisional findings that the proposed transaction does not raise competition concerns. This decision, an important milestone towards completion of the deal, allows Viasat acquisition to proceed.
The proposed transaction has now received clearance from the UK government under the National Security and Investment Act and the CMA, as well as the Australian government’s Foreign Investment Review Board (FIRB) and the Committee on Foreign Investment in the United States.
“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,” said Mark Dankberg, Chairman and CEO, Viasat.
“Additionally, this deal will also create new high-skill technology jobs, deepen Viasat’s capabilities in the UK, and ultimately help to deliver the goals of the UK’s National Space Strategy. I appreciate the extensive review by the CMA to review this transaction and thank them for their efforts.”
It was in October 2022 that the CMA decided to deepen its investigation of the deal. It announced the investigation “on the basis that, on the information currently available to it, it is or may be the case that this merger has resulted or may be expected to result in a substantial lessening of competition within a market or markets in the United Kingdom”.
“Today’s decision by the CMA to clear the Viasat-Inmarsat deal is hugely significant for the UK’s space ambitions and customers everywhere,” Rajeev Suri, Chief Executive Officer at Inmarsat.
“We would like to thank the CMA Independent Panel and Case Team for their diligent work on the review and for recognising that in today’s fast changing satellite communications sector the needs of customers will continue to be well served.”
The EU Commission, however, is still assessing the proposed acquisition under the rules of EU Merger Regulation.
It said it was concerned the transaction may allow Viasat to reduce competition. Specifically, in the market for the supply of broadband in-flight connectivity (‘IFC’) services to commercial airlines.
See also: European Commission investigates proposed Inmarsat, Viasat acquisition
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