UK Watchdog to Investigate Viasat’s Inmarsat Acquisition

Britain’s competition regulator said on Friday it had commissioned a detailed review of Viasat’s US$7.3 billion (A$12 billion) acquisition of satellite rival Inmarsat, raising the possibility that the deal could be delayed.

US-based Viasat’s planned acquisition of the UK company was announced late last year and was due to close later this year, but the Competition and Markets Authority (CMA) has 24 weeks to complete its investigation.

The CMA’s concern is that the partnership could stifle competition in the airline connectivity market and airlines could face higher prices for in-flight Wi-Fi.

UK and US authorities have already granted security clearances for the acquisition.

Viasat provides connectivity services to residential, aviation and defense customers in North America, while Inmarsat provides satellite-based communications services to the shipping, aviation and government sectors.

Both companies said they remain confident that the deal will go through and increase the availability of affordable in-flight Wi-Fi, while rivals Panasonic and Intelsat have more than 75% of the market on long-haul flights. I pointed out that

A joint statement from Viasat and Inmarsat said that as their engagement with CMA progresses, they will be notified of any anticipated delays in closing the deal.

Based on the information currently available, Watchdog said the deal would require further investigation as it could result in a “substantial reduction in competition within one or more markets” in the UK. said.

UK Watchdog to Investigate Viasat’s Inmarsat Acquisition

Source link UK Watchdog to Investigate Viasat’s Inmarsat Acquisition

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