VSAT - European Commission opens in-depth review into Viasat's purchase of Inmarsat

Europe's antitrust regulator has opened an in-depth investigation into Viasat's ( NASDAQ: VSAT ) planned acquisition of Inmarsat.

The European Commission is concerned that the transaction "may allow Viasat to reduce competition in the market for the supply of broadband in-flight connectivity (‘IFC') services to commercial airlines," the regulator said in a statement.

The proposed transaction was notified to EC on Jan. 9. The regulator now has 90 working days until June 29 to make a decision on the transaction.

The EC said it's "concerned that by acquiring Inmarsat, Viasat may reduce competition in the supply of broadband IFC services to commercial airlines in the EEA and/or globally."

The EC in-depth review comes after the UK's antitrust watchdog moved the $7.3 billion planned acquisition of Inmarsat into an in-depth investigation in October. The deal could end up boosting prices for in-flight Wi-Fi, in part by making things tougher for rivals and future rivals in that space, the regulator said at the time.

Viasat ( VSAT ) agreed to buy Inmarsat in a transaction valued at $7.3 billion in cash and stock in November 2021. Viasat rose 2.8% in trading on Monday.

Viasat ( VSAT ) shares plunged 14% last Wednesday when it reported Q3 results that were adversely impacted by weakness in its Link-16 TDL business.

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