VSAT - UK regulator starts in-depth probe of Viasat-Inmarsat deal
- The UK's antitrust watchdog has moved to an in-depth investigation of Viasat's ( NASDAQ: VSAT ) planned acquisition of Inmarsat, a deal valued at $7.3B.
- The Competition and Markets Authority is moving to a Phase 2 probe of the transaction. In its Phase 1, it laid out the stakes: 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 including Panasonic ( OTCPK:PCRFY ), Intelsat, SpaceX ( SPACE ), Telesat ( TSAT ) ( TSAT:CA ) and OneWeb.
- Telesat stock ( TSAT:CA ) is up 4.1% in Toronto; Viasat ( VSAT ) is 0.4% lower on Nasdaq.
- Viasat and Inmarsat "supply satellite connectivity to a range of industries but compete most closely in the supply of in-flight connectivity for aircraft," the CMA said in its Phase 1 summary .
- The companies respond that they look forward to working with the CMA to "demonstrate how the planned combination of the companies will benefit customers by improving efficiencies, lowering costs, and increasing the availability of in-flight connectivity around the world."
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UK regulator starts in-depth probe of Viasat-Inmarsat deal