15 Jul 19. The UK’s Competition and Markets Authority (CMA) is considering whether the acquisition of Inmarsat by private equity firms led by Apax and Warburg Pincus would reduce competition in the market. The CMA is investigating the anticipated acquisition by Connect Bidco Limited of Inmarsat plc.
Statutory timetable
Phase 1 date Action
10 September 2019 Deadline for phase 1 decision (*)
16 July to 29 July 2019 Invitation to comment
15 July 2019 Launch of merger inquiry
(*) This date is the current statutory deadline by when the decision will be announced. If any change occurs, the information is refreshed as soon as practicable. However, the CMA cannot guarantee that the decision will be announced on or before this current deadline, as the deadline of a given case may change during the merger assessment process due to different reasons.
Invitation to comment: closes 29 July 2019
The Competition and Markets Authority (CMA) is considering whether it is or may be the case that this transaction, if carried into effect, will result in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002 and, if so, whether the creation of that situation may be expected to result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services.
To assist it with this assessment, the CMA invites comments on the transaction from any interested party. These comments should be provided by the deadline set out above. Notification of merger enquiry to the Department for Digital, Culture, Media & Sport
The CMA brought the acquisition by Connect Bidco Limited of Inmarsat plc to the attention of the Secretary of State for Digital, Culture, Media & Sport under section 57(1) of the Act, as the CMA considered that the transaction may raise public interest considerations under section 58 of the Act.
Launch of merger inquiry
The CMA announced the launch of its merger inquiry by notice to the parties.
- Commencement of initial period notice (16.7.19)
Contact
Please send written representations about any competition issues to:
Tom Akhgar
Competition and Markets Authority
Victoria House
Southampton Row
London
WC1B 4AD
tom.akhgar@cma.gov.uk
On 25 Mar 19, the FT reported today that a consortium led by private equity groups Apax and Warburg Pincus is set to acquire satellite communications company Inmarsat in a deal that values the UK group’s equity at $3.4bn, the companies said on Monday. Alongside Canada’s CPPIB and Ontario Teachers’ Pension Plan Board, the groups will pay $7.21 in cash per Inmarsat share and will take the entire group private. The offer represents a 27 per cent premium to the closing price of £4.31 per Inmarsat share on March 18. Including debt, the offer values the company at about $6bn. The deal is expected to be completed by the end of the year, pending regulatory approvals.
(See: BATTLESPACE ALERT Vol.21 ISSUE 06, 25 March 2019, Private equity consortium to buy Inmarsat for $3.4bn)