Preiskel & CoPreiskel & Co
Preiskel & Co
  • Home
  • About Us
    • Diversity, Social Responsibility, and Pro Bono
  • Services
    • Corporate
    • Commercial
    • Regulatory
    • Competition & Antitrust
    • Data Protection, Privacy, and Retention
    • Intellectual Property
    • Dispute Resolution
    • Employment
  • Sectors
    • Telecommunications
    • IT, Technology, & Internet
    • Media and Broadcasting
    • Websites, Blogging, & Social Media
    • Film & Television
    • Gambling & Online Gaming
    • Leisure & Retail
    • Energy & Minerals
    • Cryptocurrency & Blockchain
    • Creative Industries
  • People
    • Daniel Preiskel
    • Ronnie Preiskel
    • Tim Cowen
    • Jose Saras
    • Robert Dougans
    • Karthyaeni Vittala
    • Tina Cowen
    • D A T Green
    • Richard Stewart
    • Mor Swiel
    • Ilanit Appelfeld
    • Stephen Dnes
    • Daniel Oakland
    • Robert Harvey
    • Martina Raciti
    • Joanna Coombs-Huang
    • Xavier Prida
    • Stewart White
    • Alison MacFarlane
    • Hannah Leader
    • Peter Dally
    • Antony Corel
    • Sue Warwick
    • Tony Curzon-Price
    • Shardi Shameli
    • Stephen Hornsby
    • Ewelina James
    • Maria Constantin
    • Sophia Yakhno
    • Rachael Machado
  • International
  • Blog
  • News
    • Publications
  • Contact
Menu back  

Inmarsat Takeover Provisionally Cleared for Take-Off

March 10, 2023By Preiskel & Co

On 1st March 2023, the Competition & Markets Authority (“CMA”) provisionally cleared the anticipated takeover by Viasat Inc. of Inmarsat Group Holdings Limited. The takeover shall see Viasat Inc. acquire 100% of Inmarsat’s issued share capital and the aggregate consideration is valued at $7.3 billion. The completion of this proposed acquisition is conditional upon approvals from the CMA and European Commission. The relevant authorities acknowledge the indisputable fact that both parties have been growing faster than other established suppliers of inflight connectivity (“IFC”) services, they regularly bid against each other in tenders, and are each recognised as dominating rivals in the market.

Although, whilst the entities do compete closely in the aviation sector, the CMA revealed in their report that the proposed deal is not “expected to result in a substantial lessening of competition (“SLC”) in the supply of broadband IFC services to commercial aviation or business aviation customers serving in the UK”.

The CMA was able to reach these findings based on a confident expectation of upcoming growth in the satellite sector that is driven in large by the ever-growing demand for the internet by businesses and consumers, both at home and whilst travelling. The CMA emphasise in their report that the satellite sector has recently seen, “and is likely to continue to see disruptive entry by new players with innovative technologies and substantial resources, while established providers are also responding to these threats and opportunities in various ways”.

The CMA thus highly anticipate that, despite the substantial concentration that this takeover may generate, there will still be impactful competitors in the market that Inmarsat will come up against, including existing players such as Intelsat and Panasonic, and newer entrants like Starlink (operated by SpaceX). This implies that airlines will not fall short of choices when selecting service providers, and so customers will also not be adversely affected by a consequential surge of on-board Wi-Fi prices.

The CMA also emphasised in their assessment that airlines are generally sophisticated and flexible customers “that are highly engaged with the IFC market” and thus can be expected to preserve their ability to make sensible supplier choices, despite the overwhelming market share that Inmarsat may hold immediately post-acquisition.

Albeit the deal is far from done, as the floor remains open for interested parties to submit their feedback to the CMA until 21st March, prior to the issuance of the final report, which is expected on 30th March.

Meanwhile, the proposed takeover is yet to win EU approval, as the European Commission are still undergoing their own scrutinous investigation of the potential anti-competitive consequences and are expected to give their decision on the later date of 29th June.

 

Find the Competition & Market’s Authority Provisional Findings Report here.

Please contact Daniel Preiskel if you have any questions regarding the above.

The material in this article is only for general review of the topics covered and does not constitute legal advice. No legal or business decision should be based on its content.

This article is written in English language. Preiskel & Co LLP is not responsible for any translation of all or part of its content into any language.

Leave Comment

Cancel reply

Your email address will not be published. Required fields are marked *

clear formSubmit

Latest Preiskel & Co blog posts
  • Advocate General Opinion on Automated Credit-Scoring & Retention of Insolvency Data
    March 28, 2023
  • White House’s Economic Report of the President sets out a roadmap to improve competition in digital markets
    March 22, 2023
  • Brussels Conference brings in industry leaders to discuss the international antitrust landscape
    March 22, 2023
  • Issues in the UK’s forthcoming Digital Markets, Competition and Consumer Bill
    March 17, 2023
  • Stormy weather for cloud computing in the EU
    March 16, 2023
  • Inmarsat Takeover Provisionally Cleared for Take-Off
    March 10, 2023
  • EDPB’s Feedback on the New EU-U.S. Data Privacy Framework
    March 6, 2023
  • UK Data Reform Bill to return to the House of Commons
    March 3, 2023
  • DCMS Publishes New Security and Privacy Principles for App Store Operators and Developers
    February 16, 2023
  • DPO’s Dismissal & Conflicts of Interest Under The EU GDPR – CJEU Ruling
    February 14, 2023
  • ICO – Change of Deadline for Reporting Breach Notifications for Communication Service Providers
    February 6, 2023
  • General EU Requirements for Cookie Banners – EDPB Task Force Report
    January 27, 2023

The Preiskel Blog

  • Advocate General Opinion on Automated Credit-Scoring & Retention of Insolvency Data 28 Mar 2023
  • White House’s Economic Report of the President sets out a roadmap to improve competition in digital markets 22 Mar 2023
  • Brussels Conference brings in industry leaders to discuss the international antitrust landscape 22 Mar 2023
  • Issues in the UK’s forthcoming Digital Markets, Competition and Consumer Bill 17 Mar 2023

Preiskel news

  • Senior Partner, Danny Preiskel, quoted by IT Pro on the costs incurred by MNOs
  • Senior Partner, Danny Preiskel, will be a panellist at GCCM Carrier Community 2023 on IOT
  • Jose Saras and Xavier Prida Awarded First Place as Data Protection Thought Leaders in the UK
  • Ronnie Preiskel chosen to judge 24 May 2023 The Tech Capital Global Awards
Preiskel tweets
  • Advocate General Opinion on Automated Credit-Scoring & Retention of Insolvency Data. Find out more here: https://t.co/bJkvPBvj6F6 hours ago
  • Issues in the UK’s forthcoming Digital Markets, Competition and Consumer Bill. Find out more: https://t.co/3BHP1xq69Y5 days ago
  • White House’s Economic Report of the President sets out a roadmap to improve competition in digital markets. Find o… https://t.co/S7J7sX3kfs6 days ago
Preiskel & Co LLP
4 King's Bench Walk,
Temple,
London
EC4Y 7DL
United Kingdom

Tel: +44 20 7332 5640
Email: info@preiskel.com

Find us on:

TwitterLinkedinMail
© Preiskel & Co LLP 2023 | Site map | Legal notices | Cookie Policy | Privacy