The CMA has confirmed it will assess the proposed $7.3bn acquisition of Inmarsat (based in the UK) by its rival Viasat (based in the US) under section 96(2A) of the Enterprise Act 2002 (EA).

Plans for the takeover were revealed in November 2021, with the greenlight being received to proceed by stockholders in June.

Both organisations operate their own satellite networks and provide two-way satellite communication to commercial customers and governments around the world, with concerns being raised particularly regarding competition in the market for the supply of satellite in-flight connectivity services for commercial aviation.

The CMA will consider whether a relevant merger situation would be created under the EA, and, if so, whether may be expected to result in a substantial lessening of competition within any market(s) in the UK for goods or services.

The CMA’s deadline for its phase 1 decision is 5 October 2022. To find out more, please click here.

The deal is also being scrutinised at an EU level following a string of requests from Member States. See here for further information.