Satellite operators SES and Intelsat discuss merger – FT | Photo credit: SES – www.ses.com
August 4 (Reuters) – Luxembourg-based satellite operator SES is in talks with US rival Intelsat about a merger, the Financial Times said on Thursday, which would accelerate consolidation in a booming competitive industry.
French group Eutelsat announced last week that it had signed a memorandum of understanding to merge with OneWeb in a race to develop satellite constellations against competitors such as Starlink, which depends on Elon Musk’s SpaceX, and Kuiper from Amazon.
SES and Intelsat are actively discussing the outlines of a potential deal, the Financial Times reported, citing three people familiar with the matter, adding that negotiations are still in their infancy and there is no guarantee that a deal will be struck.
Intelsat did not immediately respond to a Reuters inquiry, and SES declined to comment on “market rumors or speculation.”
However, Luxembourg-based group chief executive Steve Kollar told reporters in a conference call about the release of the half-year results that he thought industry consolidation was “a good thing.”
SES, which has a market capitalization of €3.57 billion according to Refinitiv Eikon, posted a higher-than-expected first-half adjusted EBITDA of €545 million on a turnover of €899 million. (Report by Kanjik Ghosh in Bangalore, with Dina Kartit and Elena Vardon in Gdansk, French version of Laetitia Volga, edited by Keith Entringer)