(Sharecast News) - The UK's Competition and Markets Authority has provisionally cleared US satellite company Viasat's £5.4bn takeover of UK rival Inmarsat following an in-depth review.
The CMA said on Wednesday that while the two companies compete closely in the aviation sector - specifically in the supply of satellite connections for onboard wifi - the deal does not substantially reduce competition for services provided on flights used by UK customers.
The watchdog pointed out that the sector is expanding rapidly, and said this is a trend that is expected continue.
The merged company would be challenged by new competitor Starlink, as well as established firms like Intelsat and Panasonic, in the coming years, it said.
It added that as the sector grows, airlines will have more options to choose from when selecting a provider for on-board wifi services.
The CMA said its findings were provisional and it will now consult on the findings and listen to any further views before reaching a final decision.
Viasat and Inmarsat agreed the deal in November 2021.
