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SES confirms merger talks with Intelsat

The combined company, which includes the European fleet of Astra satellites, will be valued at $10bn.

Luxembourg-based SES confirmed it is in talks about potentially merging with satellite operator Intelsat.

In a statement, SES said: “In response to rumours in the market, SES S.A. confirms that the company has engaged in discussions regarding a possible combination with Intelsat. At this stage, there can be no certainty that a transaction would materialise. The Board of SES remains fully committed to acting in the best interest of SES and its shareholders.”

A report by Bloomberg said the companies are in advanced negotiations and aim to reach an agreement as soon as the next few weeks. A transaction could value the combined business at more than $10bn including debt.

Any deal would require the approval of the Luxembourg government, the largest shareholder in SES.

Last month SES suspended a long-running legal action against Intelsat.