SES SA (SGBAF) has announced it has agreed to acquire Intelsat Holdings for approximately $3.1 billion, a move that positions the combined entity as an industry giant in Europe.
SES shares plunged 12% in Paris trading.
The deal comes as part of a broader trend in the region as European satellite firms look to become more competitive against major players like Elon Musk's Starlink and Amazon's (NASDAQ:AMZN) Project Kuiper.
The merged entity will have its headquarters in Luxembourg while maintaining a substantial presence in the United States.
"The transaction has been unanimously approved by the Board of Directors of both companies and Intelsat shareholders holding approximately 73% of the common shares have entered into customary support agreements requiring them to vote in favour of the transaction," the companies added.
The buyout will be funded through cash and new debt financing, including hybrid bonds.