The competition watchdog has launched an inquiry into the £2.6 billion takeover of Britain’s largest satellite communications provider. The regulator will examine whether the acquisition of Inmarsat by a consortium of investors would drive up prices for customers. It also has notified Jeremy Wright, the culture secretary, of potential public interest concerns. Inmarsat, which sells satellite telephones and internet access, is a supplier to the government. The company agreed to be taken over by Apax and Warburg Pincus, the private equity funds, and two Canadian pension schemes. The Competition and Markets Authority said that it would look into whether the deal would result in a “substantial lessening of competition” in the sector. Interested parties have until July 29 to submit their views on the takeover.
The UK's competition regulator has launched an investigation into a proposed takeover of Inmarsat. A £3.2bn ($2.6bn) deal to acquire the company, which is Britain’s largest satellite communications provider, had been agreed by a consortium of investors, including Apax, Warburg Pincus and two Canadian pension schemes. However, fears have been raised concerning the impact of the takeover on prices, with a decision on whether to allow the deal to proceed or to launch an in-depth inquiry due on 10 September.