ALBAWABA — European satellite telecommunications provider SES said Wednesday it is exploring a possible merger with US rival Intelsat in what would be another tie-up in the sector as the race for space-based Internet service heats up.
A tie-up between SES and Intelsat would lead to the creation of a $10 billion plus group in a merger that would need the nod of Luxembourg government, SES's top shareholder, according to Bloomberg.
A merged group would generate more than $4 billion in combined revenues.
"In response to rumors in the market, SES SA confirms that the company has engaged in discussions regarding a possible combination with Intelsat. At this stage, there can be no certainty that a transaction would materialize. The Board of SES remains fully committed to acting in the best interest of SES and its shareholders," Luxembourg –based SES said in a statement.
Intelsat and SES are set to receive nearly $9 billion in combined proceeds for clearing the C-band spectrum for terrestrial cellular operators.
Last month SES suspended a long-running legal action against Intelsat, which sought reparations from Intelsat over the running costs of the C-Band Alliance.
Other sector mergers in the works include France's Eutelsat with UK counterpart OneWeb, as well as US provider Viasat and Britain's Inmarsat as the satellite communications sector seeks to consolidate in the wake of the arrival of billionaire players Elon Musk and Jeff Bezos on the scene.
The group distributes transmission capacity to more than 8,000 TV broadcasters across the globe.
