France's Strategic Investment: Eutelsat's Leap into Satellite Sovereignty

The French government is set to become the leading shareholder in Eutelsat following a hefty capital increase of 1.35 billion euros. The move, endorsed by the finance ministry, aims to empower Eutelsat against competitors like Elon Musk's Starlink, amid rising geopolitical tensions and Europe's desire for self-reliant satellite capabilities.

Additional financial contributions will come from existing shareholders such as Bharti Space and CMA CGM. Discussions are ongoing with the UK government, which holds a significant stake in Eutelsat, about potential investment in the share sale. The British government maintains unique rights over OneWeb, which recently merged with Eutelsat.

The merger marks a strategic pivot for Eutelsat, aligning with Europe's aim for satellite sovereignty while transitioning from TV broadcasting to enhanced low-Earth orbit connectivity. Amidst this landscape, Finance Minister Eric Lombard emphasized the strategic importance of satellite connectivity for France's industrial and digital sovereignty.

(With inputs from agencies.)