[Asia Economy Reporter Jeong Hyunjin] French satellite communications company Eutelsat is expected to acquire British space internet company OneWeb for $3 billion (approximately 3.9 trillion KRW). This deal aims to secure competitiveness in the rapidly growing private space industry, with both the French and British governments expected to secure seats on the board of directors. Attention is focused on whether Europe's private space industry, which has so far relied on US and Chinese technology, can grow enough to stand shoulder to shoulder with Elon Musk's private space company SpaceX.
According to Bloomberg and others on the 24th (local time), Eutelsat is expected to announce the acquisition of OneWeb for $3 billion on the 25th. Although the final agreement had not been completed by the evening of the 24th, most issues had been agreed upon, and sources said the announcement would proceed as scheduled on the 25th. This deal was reported once by foreign media on the 22nd.
Eutelsat, headquartered in France, is one of the world's top three communications satellite companies operating across Europe, the Middle East, Africa, and India. The French government holds about 20% of Eutelsat's shares, and a Chinese sovereign wealth fund holds 5%. OneWeb, the acquisition target, was established in 2012 and focuses on space internet business by launching satellites to provide ultra-high-speed internet worldwide. The British government holds about 18% of OneWeb's shares. When financial difficulties arose suddenly due to a funding crunch in 2020 at the start of the COVID-19 pandemic, the British government provided financial support.
It is reported that if this deal is completed, both the French and British governments will each receive one seat on Eutelsat's board of directors. The French government is expected to maintain its stake through the French Public Investment Bank. Additionally, Sunil Bharti Mittal, the current chairman of OneWeb, is expected to become co-chairman of the merged company, and Eva Bernacchi, CEO of Eutelsat, is expected to retain her current position.
If Eutelsat's acquisition of OneWeb proceeds as expected, it is anticipated to become a leading European private satellite company. Eutelsat, which needed new business, has joined hands with OneWeb, which sought funding for technology development. Especially amid strained relations between the UK and the European Union (EU) due to Brexit negotiations, this deal appears to show cooperation in the private space business.
Bloomberg described this deal as "the realization of French President Emmanuel Macron's satellite dream," stating that "Europe will set satellite supply goals to rival Elon Musk's SpaceX." In February, President Macron mentioned before ministers from other European countries that building satellites is a matter of sovereignty. Until now, Europe has had to rely on Chinese and American technology for satellite systems, but this deal will lay the foundation to enhance space competitiveness.
The private space industry is fiercely competitive, centered on the United States. SpaceX's low Earth orbit satellite internet service Starlink already operates more than 2,500 satellites and is developing commercial services worldwide. Jeff Bezos's space internet company Blue Origin is also planning to launch satellites within months for its space internet project, "Project Kuiper."
However, Bloomberg pointed out potential issues, noting that Eutelsat receives strong support from the French government, that a Chinese sovereign wealth fund is its fourth-largest shareholder, and that it serves as a major supplier to Russian TV channels.
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