Luxembourg-based SES has confirmed it’s in talks with satellite rival Intelsat.
In a short statement issued Wednesday, the operator said: “In response to rumours in the market, SES SA confirms that the company has engaged in discussions regarding a possible combination with Intelsat. At this stage, there can be no certainty that a transaction would materialise. The Board of SES remains fully committed to acting in the best interest of SES and its shareholders.”
The combined company, which includes the European fleet of Astra satellites, would be valued at £10 billion.
The possibility of a merger with its US rival was first mooted last August, as a response to changing market conditions.
Any deal would require the approval of the Luxembourg government, the largest shareholder in SES.
Last month SES suspended a long-running legal action against Intelsat. SES was seeking reparations from Intelsat over the running costs of the C-Band Alliance. In a separate legal action SES is suing for a 50/50 allocation of the FCC’s Accelerated Relocation Payments.