Luxembourg-based satellite telecom company SES SA (OTCPK: SGBAF) is in talks with rival Intelsat SA to create a new satellite company.
What Happened: SES SA engaged in discussions regarding a possible combination with Intelsat, the company said in a statement. However, at this stage, there is no certainty that a transaction would materialize, the company added.
However, as per a Bloomberg report, citing people with knowledge of the matter, the two companies are in the advanced stages of negotiation and are expected to reach an agreement in the next few weeks. A transaction could value the combined business at over $10 billion including debt, the report added.
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SES and Intelsat hold a combined 40% share of the fixed satellite services market, Bloomberg said, citing Goldman Sachs Group Inc.
While SES has over 70 satellites in two different orbits, Intelsat has 56 satellites, as per their respective websites.
However, in the light of tough competition from newer players such as Amazon.com Inc (NASDAQ:AMZN) and Elon Musk's SpaceX, a combination would help SES bulk up, the report added.
Intelsat, meanwhile, filed for bankruptcy in May 2020 and only reemerged from bankruptcy in February last year.
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