The Commission concluded that the proposed acquisition would raise no competition concerns Copyright (c) 2020 Postmodern Studio/Shutterstock. No use without permission.

The Commission concluded that the proposed acquisition would raise no competition concerns Copyright (c) 2020 Postmodern Studio/Shutterstock. No use without permission.

The European Commission has approved, under EU Merger Regulations, the acquisition of the sole control of Intelsat Holdings S.A. (‘Intelsat') by the German Allianz SE.

Intelsat has its administrative headquarters in Luxembourg and operates satellite networks, ground networks and connectivity infrastructure, providing diversified communications services for telecommunications operators, media companies, and internet service providers. The company also uses its satellites as relay stations in space for the transmission of voice, video, and data communications. Allianz is a global financial services company active predominantly in life and non-life insurance and asset management.

The Commission concluded that the proposed acquisition would raise no competition concerns in the bloc’s markets, stating there was an absence of horizontal overlaps or vertical relationships between the activities of the companies.

Intelstat’s financial trouble

Intelsat filed for bankruptcy court protection in May 2020 to eliminate its $15bn debt and release finance to purchase satellites to clear C-band spectrum for US 5G networks.

In Feburary of 2021, the satellite from $15bn to $7bn by issuing new stock.

By August of the same year, the Luxembourg-American satellite confirmed it had filed an before the US bankruptcy court of the Eastern District of Virginia, Richmond Division. The firm at the time said it was making advances on several technological innovations, including rights and partnerships to build a 5G satellite-based network of satellite networks that can support any access technology, supporting mobility, Internet of Things and 5G services.

In December 2021 SpaceNews reported that Intelsat was poised to exit Chapter 11 in early 2022, after its bankruptcy court approved a restructuring.

Support came after Luxembourg satellite operator SES agreed to drop its opposition to the restructuring plan, in return for changes to how Intelsat distributes assets across Intelsat entities post-bankruptcy. The changes were made amid legal action SES had lodged against Intelsat over how C-band clearing proceeds should be divvied up among satellite operators.SES also agreed to waive its demand for punitive damages as part of the negotiation.

A court hearing on SES’ claim is scheduled to start on 7 February.