Britain plans to invest 163 million euros ($191 million) in satellite operator Eutelsat, two sources close to the matter said, adding to a much bigger cash injection from France to help the company compete with SpaceX’s Starlink.
Europe is racing to build up sovereign capabilities in several key areas, including defence and satellite communications, after Russia’s invasion of Ukraine and US President Donald Trump’s “America First” policies.
French President Emmanuel Macron, who is on a two-day state visit to Britain, thanked London in a post on X for the investment, without disclosing its value.
Eutelsat and the British government did not immediately respond to a request for comment on the investment details.
The French government is poised to become the largest shareholder in Eutelsat later this year and is leading a separate 1.35 billion euro capital increase to support the debt-laden company.
The state shareholding agency will inject 717 million euros and bring its stake in the satellite operator to 29.99%.
By investing 163 million euros, Britain will maintain its 10.9% stake in Eutelsat, one of the sources said, avoiding dilution from the French recapitalisation announced in June.
It will also retain its ‘golden share’, which gives the UK certain veto powers over OneWeb, the London-based subsidiary of Eutelsat, that source said.
The deal could also open the door to Britain’s involvement in the European Union’s IRIS² satellite constellation project, for which Eutelsat is one of the main contractors, Les Echos newspaper, which first reported the UK’s investment, said.
Britain became a shareholder in OneWeb in 2020 as part of a $1 billion bailout alongside investor Bharti Space, before OneWeb merged with Eutelsat in 2023.
Eutelsat owns and manages 34 traditional geostationary satellites and over 600 low Earth orbit satellites, the world’s second-biggest constellation after Starlink’s.
Eutelsat shares rose 10% in early Paris trading.
The company’s stock has gained 63% this year, buoyed by France’s financial commitment and investors betting on its satellites as the best alternative to Starlink.
REUTERS/Christopher Ojilere