Eutelsat, OneWeb Agree $3.4 Billion Deal to Rival SpaceX

Eutelsat Communications SA and OneWeb Ltd. are set to combine in an all-share deal valuing the UK satellite operator at $3.4 billion, a step toward creating a European champion to rival the likes of Elon Musk’s SpaceX. OneWeb shareholders will hold 50% of Eutelsat, which will continue to be listed in Paris and will ask to be listed on the London Stock Exchange.  Both the UK and French governments have stakes in OneWeb and Eutelsat respectively, and the UK will continue to own a special share, giving it certain veto rights over strategic decisions such as the location of the firm’s headquarters. The UK government has agreed a range of national security rights, and for OneWeb to prefer procurement for manufacturing from businesses in the UK. Although shareholders will split the company, the deal bears the hallmarks of a takeover by Eutelsat. OneWeb will keep its own branding and operate the low-orbit business of the combined group, which will have a primary listing in Paris. Eutelsat chairman Dominique D’Hinnin is set to be chairman of the combined entity, with his OneWeb counterpart Sunil Bharti Mittal as co-chair and vice president. Eutelsat Chief Executive Officer Eva Berneke will run the new group.