UK competition watchdog to investigate $6bn Inmarsat take-private deal
Buyout would see Britain’s largest satellite company return to private equity ownership
The UK’s competition watchdog has launched an investigation into plans to take Inmarsat, Britain’s largest satellite company, private.
The Competition and Markets Authority said on Tuesday it was considering whether the acquisition of Inmarsat by private equity firms led by Apax and Warburg Pincus would reduce competition in the market.
The deal, announced in March, would see Inmarsat return to private equity ownership almost 15 years after it was floated, valuing it at around $6bn, including debt. It had been expected to be completed by the end of the year, pending regulatory approvals.
The CMA will now consider whether the deal will create a “relevant merger situation” under the Enterprise Act 2002 and, if so, whether it is likely to result in a “substantial lessening of competition” within the UK.
The watchdog has invited comments from any interested parties by the end of this month. The deadline for a decision on a Phase 1 investigation is September 10.
Inmarsat has in the past regularly been linked with a takeover by an industry rival but has struggled to attract investors because of its recent poor performance. In May it reported a 13 per cent drop in first-quarter earnings.