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Oneweb and Eutelsat can reach an agreement soon next week, people say, ask not to be identified because the discussion is private. Oneweb, where the British government has minority shares, will be worth around $ 3 billion or more, said people.
Eutelsat listed in Paris, with a market value of around 2.4 billion Euros ($ 2.5 billion), is supported by French State Investment companies BPIFRANTE SA and also minority investors in Oneweb.
As part of the proposed transaction, investors in Oneweb will continue to hold a minority bet, said people. The investor included the British government and Bharti Airtel Ltd., carried out by Tycomunications Tycoon Sunil Mittal.
The joint company will be registered at Euronext Bourse in Paris, although the company can also find a list of London in the future, people said.
While the discussion was submitted, the final agreement has not been reached and the discussion can still end without one, said people.
Spokesperson for Oneweb did not immediately respond to email outside working hours in the UK. Representatives for the British government refused to comment. A spokesman for Eutelsat is not immediately available to comment outside working hours in France.
The Starlink Musk fleet of more than 1,500 satellites launched in the last three years by Spacex has created challenges that have never happened before for competitors, who lead to a wave of consolidation in this sector.
Last year, Viasat Inc. Agree to buy Inmarsat Group Holdings Ltd. For $ 4 billion, creating the largest geostationary satellite company in the world. Eutelsat himself rejected the offer of the takeover of billionaire Patrick Drahi who appreciated 2.8 billion Euros.
Oneweb emerged from bankruptcy in 2020 in the Bailout by the British with the help of Mittal, signifying industrial strategies that were more intervened by the government after Brexit. The agreement with Eutelsat will be a rare example of the British and French companies that joined, and involving two companies supported by the state showed how much the two governments were involved in the telecommunications industry.
The company was founded in 2012 to build a small satellite constellation in the Low Earth orbit, the internet connection beaming to remote places. Oneweb collected $ 3.4 billion from the Corp Softbank Group, Airbus SE and other big names before collapsed when investors led to withdraw their money at the top of Pandemi Coronavirus.
