UK satellite firm OneWeb and France’s Eutelsat sign initial merger deal

British company, bailed out by government, and former rival could take on Elon Musk's Starlink after tie-up

The British satellite company OneWeb and its French rival Eutelsat have announced they have signed an initial merger deal that could help them challenge the likes of the Elon Musk-owned SpaceX's Starlink.

The transaction, following reports that both companies were in tie-up talks, values OneWeb at $3.4bn (2.8bn). It would be structured as an exchange of OneWeb shares by its shareholders with new shares issued by Eutelsat, leaving the latter owning 100% of OneWeb.