OneWeb, the British satellite firm rescued by the UK taxpayer, has agreed a merger with French rival Eutelsat to create a “global player” in space-based internet connectivity.

It was announced that the all share combination would value OneWeb at $3.4bn (£2.8bn) – structured as an exchange of OneWeb shares by its shareholders, including the UK government, with new shares issued by Eutelsat.

The Department for Business, Energy & Industrial Strategy (BEIS) said it meant the taxpayer would now have a “significant stake in what will become a single, powerful, global space company.”

OneWeb was rescued from bankruptcy proceedings in the US at the height of the COVID pandemic through a £400m bailout.

It was seen as a crucial communications investment at that time, spearheaded by Boris Johnson on the advice of his then-senior adviser Dominic Cummings.

The deal – subject to national security and Eutelsat shareholder clearances – will see OneWeb’s headquarters remain in the UK, with France-listed Eutelsat applying for admission to the London Stock Exchange.

It would see the pair combine a complicated set of owners, which also includes Indian telecoms billionaire Sunil Bharti Mittal on OneWeb’s side with Eutelsat’s investors.

Heathrow and easyJet update on flight chaos as both reveal big financial hits

MPs call for government to update energy support package after price cap forecasts worsen

Amazon to increase cost of Prime membership for the first time since 2014 due to ‘increased inflation and operation costs’

They include entities owned by the French and Chinese states.

A deal would also combine the companies’ resources in the race to build a constellation of low-orbit satellites, placing them in competition with the likes of Elon Musk-owned SpaceX’s Starlink and Amazon’s Project Kuiper.

OneWeb’s work has been compromised by the Russian invasion of Ukraine as international sanctions now prevent the use of Russia-based satellite launches.

Related posts:

Britons urged to count butterflies amid fears cold and wet spring has hit numbers Commandos seek ‘battlefield advantage’ as they train with drone swarms in UK first Hungry astronauts aboard the International Space Station to receive pizza, fruit and cheese Instagram introduces new tool to combat waves of online abuse Apple drops lawsuit against virtual iPhone company Samsung reveals new folding and flip phones in bid to take niche handsets mainstream NASA’s Mars helicopter spots Perseverance rover from above – can you? ‘Incel’ movement referenced by Plymouth gunman of growing concern to UK police Royal Navy unveils vision of the autonomous fleet of the future Rock samples found by rover reveal alien life may have existed on Mars, says NASA Giant 1km-wide asteroid to pass by Earth, NASA says British coral predicted to expand its range due to climate change