Britain Backs Eutelsat with €163 Million Investment
Britain plans to invest €163 million ($191 million) in satellite operator Eutelsat. This move will add to a larger cash injection from France, helping the company compete with SpaceX’s Starlink.
Europe aims to build stronger capabilities in defence and satellite communications. The push comes after Russia’s invasion of Ukraine and the US’s “America First” policies.
France Leads Eutelsat’s Capital Boost
French President Emmanuel Macron, during a visit to Britain, thanked London for the investment. However, he did not share the amount in public.
France plans to become Eutelsat’s largest shareholder this year. It is leading a €1.35 billion capital increase to support Eutelsat as it works to reduce its debt.
The French state agency will inject €717 million. This will raise its stake in Eutelsat to 29.99%.
Britain Maintains Its Stake and Veto Rights
By investing €163 million, Britain will keep its 10.9% stake in Eutelsat. This step will prevent dilution from France’s recapitalisation, which was announced in June.
Britain will also keep its ‘golden share’. This gives the UK veto rights over OneWeb, Eutelsat’s London-based subsidiary.
The investment could pave the way for Britain to join the EU’s IRIS² satellite project. Eutelsat is one of the project’s main contractors.
Eutelsat Strengthens Its Satellite Position
Britain became a shareholder in OneWeb in 2020 as part of a $1 billion rescue deal with Bharti Space. In 2023, OneWeb merged with Eutelsat.
Eutelsat now manages 34 geostationary satellites and over 600 low Earth orbit satellites. This makes it the world’s second-largest constellation after Starlink.
The company’s shares rose by 10% in early Paris trading. Its stock has gained 63% this year, supported by France’s financial backing and investor confidence in its position as a strong alternative to Starlink.
with inputs from Reuters