South Africa’s Competition Commission (CompCom) has approved a $3.1 billion (R54 billion) deal, whereby satellite connectivity provider SES wants to acquire its rival Intelsat.
The companies announced the deal in April, saying on closing of the transaction (subject to receipt of relevant regulatory clearances and other relevant requirements expected during the second half of 2025), SES will pay $3.1 billion to acquire 100% of the equity of Intelsat, in a transaction which implies an enterprise value of $5 billion (R87 billion).
“The combination will create a stronger multi-orbit operator with greater coverage, improved resiliency, expanded suite of solutions, enhanced resources to profitably invest in innovation, and benefit from the collective talent, expertise and track record of both companies,” they noted.
SES is a Luxembourgish satellite telecommunications network provider supplying video and data connectivity worldwide to broadcasters, content and internet service providers, mobile and fixed network operators, governments and institutions.
Intelsat is also headquartered in Luxemburg. It provides satellite connectivity services to companies such as DStv in South Africa.
The CompCom said in a statement yesterday: “The commission has approved the proposed transaction whereby SES intends to acquire Intelsat, without conditions.”
The competition watchdog notes the primary acquiring firm, SES, is a public company incorporated in Luxembourg and listed on the Luxembourg Stock Exchange and Euronext Paris.
“As such, SES is not controlled by any person(s) or firm(s). For completeness, the government of Luxembourg is the largest shareholder of SES. SES controls one firm incorporated in South Africa, SES Astra.
“Firms controlled by SES which are incorporated outside South Africa and generated revenue in South Africa for the year 2023 are New Skies Satellites and MX1,” the regulator adds.
The primary target firm is Intelsat, a company incorporated in Luxembourg, says the CompCom, adding that Intelsat is wholly controlled by Allianz Corporate Group.
According to the watchdog, Allianz is not controlled by any person(s) or firm(s) since its shares are widely held.
Intelsat controls one firm incorporated in South Africa, namely, Intelsat Africa. Firms controlled by Intelsat which are incorporated outside South Africa and generated revenues in South Africa for the year 2023 are Intelsat Ventures (Luxembourg) and Intelsat Global Sales & Marketing (UK).
“Intelsat is a satellite operator whose activities consist of the supply of satellite capacity and satellite services. Intelsat currently operates a fleet of 57 geostationary Earth orbit satellites utilising the C-, Ku- and Ka-bands frequencies. It also operates a ground network of over 70 fibre-connected, owned and partner teleports with numerous points of presence.
“The commission is of the view that the proposed transaction is unlikely to substantially lessen or prevent competition in any market. The proposed transaction does not raise significant public interest concerns.”
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