The U.K. government has approved the planned merger between Viasat (Nasdaq: VSAT) and British satellite services provider Inmarsat following the completion of an in-depth review.
In November 2021, Viasat agreed to acquire Inmarsat in a cash-and-stock transaction valued at approximately $3.9 billion as part of efforts to provide a global hybrid network for government and enterprise communications.
In March, the U.K. Competition and Markets Authority issued a provisional clearance to the transaction after a Phase 2 investigation found that the combined entity is likely to face competition from existing and emerging companies as the satellite communications sector expands, including SpaceX, Panasonic and Intelsat.
To inform its final report on the deal, CMA sought feedback from interested stakeholders on its provisional findings, setting a March 21 deadline for the responses.
Viasat and Inmarsat officials welcomed the U.K. agency’s decision to allow the transaction to go ahead.
“We’re delighted with the CMA’s decision to unconditionally clear the deal to acquire Inmarsat, as it represents a critical step in securing final approvals to complete this transaction,” Mark Dankberg, chairman and CEO of Viasat, said in a statement published Tuesday.
“The decision validates our position that the combination of our two companies will strengthen competition in a dynamic market that continues to attract substantial levels of investment and enables us to offer better services to our customers,” Dankberg added.
The companies said the proposed merger has now secured clearance from the Committee on Foreign Investment in the U.S., Australia’s Foreign Investment Review Board and the U.K. government.
