UK decides to invest €163.3 million in Bharti supported Eutelsat

Britain plans to invest €163.3 million ($191 million) in the satellite operator Eutelsat, Reuters reported on Thursday, as part of broader efforts to enhance European sovereign capabilities in satellite communications and compete with SpaceX’s Starlink.

The investment adds to a larger capital injection led by the French government, which is set to become Eutelsat’s largest shareholder later this year. France’s state shareholding agency will inject €750 million, increasing its stake to 29.65%, Reuters said. This move aims to support the debt-laden company and bolster Europe’s strategic position in space technologies.

With the UK’s fresh investment, Britain will maintain its 10.89% stake in Eutelsat and avoid dilution from the French recapitalisation announced in June, Reuters noted. The UK will also retain its “golden share,” which grants certain veto powers over OneWeb, the London-based subsidiary of Eutelsat, according to a source familiar with the matter.
British Science and Technology Minister Peter Kyle emphasised the strategic importance of the investment, stating, “As our adversaries increasingly use space technologies to harm us, resilient satellite connectivity has become essential to our continent’s national security,” Reuters reported. Kyle added that the investment reflects Britain’s commitment to developing these technologies and maintaining a key role in the global satellite communications sector.

The total recapitalisation of Eutelsat now amounts to €1.5 billion following the UK’s involvement, Reuters said. The deal could also facilitate Britain’s participation in the European Union’s IRIS² satellite constellation project, for which Eutelsat is a primary contractor, according to the French newspaper Les Echos, which first reported the UK’s investment.

Eutelsat, which owns and manages 34 traditional geostationary satellites and more than 600 low Earth orbit satellites, operates the world’s second-largest satellite constellation after Starlink. The company’s shares surged up to 10% in early Paris trading on Thursday, Reuters noted, and have gained 64% this year amid growing investor confidence spurred by France’s financial support.

This move comes as Europe intensifies efforts to strengthen sovereign capabilities in critical sectors such as defence and satellite communications, a priority underscored by Russia’s invasion of Ukraine and shifts in US policies under former President Donald Trump.

Britain initially became a shareholder in OneWeb in 2020 through a $1 billion bailout before OneWeb merged with Eutelsat in 2023, Reuters added.