France has blocked satellite operator Eutelsat from selling its ground-based antenna business to private equity firm EQT, citing concerns that the deal would undermine Europe’s ability to compete with Starlink, Bloomberg reported.
The proposed transaction, valued at about €550 million (£550 million), would have seen EQT Infrastructure acquire a majority stake in Eutelsat’s Ground Station Infrastructure Business through a newly created company, SatPort Infrastructure. Under the terms agreed last August, Eutelsat was to retain a 20% stake in the new entity.
France’s intervention reflects the strategic importance it places on satellite ground infrastructure, which supports both civilian and military communications. The French state is Eutelsat’s largest shareholder, holding a 29.6% stake.
“I decided to not allow Eutelsat, a big French satellite company, to sell its ground-based antenna that communicate with satellites,” French Finance Minister Roland Lescure said on French commercial television channel TF1, according to Bloomberg. “These antenna are used for civil communication and military communication. Eutelsat is the only European competitor to Starlink, it’s obviously a strategic asset, so I said no.”
The decision underscores growing European concerns about reliance on non-European satellite networks, particularly as Starlink, operated by Elon Musk’s SpaceX, rapidly expands its global footprint. European governments have increasingly framed satellite communications as a matter of sovereignty and security, especially amid heightened geopolitical tensions.
Eutelsat and EQT have not publicly commented on whether the deal could be restructured or revived in another form following the government’s decision, Bloomberg reported.
