Satellite company SES to buy Intelsat for $3.1 billion

Satellite company SES has agreed to buy all the shares of Intelsat Holdings for about $3.1 billion in a deal that would create a European giant in the industry, the companies said on Tuesday.

European satellite companies have been looking to consolidate to better compete with the likes of Elon Musk’s Space X-owned Starlink, and Amazon’s Project Kuiper.

The new merged entity will be headquartered in Luxembourg, and maintain a significant presence in the United States, the companies’ statement said.

“The transaction has been unanimously approved by the Board of Directors of both companies and Intelsat shareholders holding approximately 73% of the common shares have entered into customary support agreements requiring them to vote in favour of the transaction,” the companies added.

The deal will be financed by cash and the issuance of new debt, including hybrid bonds.

SES’ Paris-listed shares were down about 4% by 0723 GMT.