UK joins France in investing in Starlink's European rival

Europe is investing in various sectors to provide a suitable response in areas such as defense and satellite communications, without having to rely on structures like those of the US. During a visit by French President Emmanuel Macron to the United Kingdom, it was announced that Her Majesty's country will proceed with a €163.3 million investment in Eutelsat, accompanying a much larger capital injection from France.

The French plan calls for a €750 million investment and the maintenance of a 29.65% stake in Eutelsat. With the planned investment, the United Kingdom intends to maintain its 10.89% stake in the organization that owns and manages 34 geostationary satellites and over 600 satellites in low orbit, making it the second-largest constellation behind Starlink. With the addition of these amounts now announced, Eutelsat's recapitalization increases to €1.5 billion.

The United Kingdom maintains a 'golden share', which grants it some veto power over OneWeb, the London-based subsidiary of Eutelsat. British Science and Technology Minister Peter Kyle said in a statement cited by Reuters that "as adversaries increase their use of space technology to harm us, resilient satellite connectivity becomes essential to the national security of our continent." The minister emphasized that this investment reflects the British commitment to developing these technologies and maintaining a significant stake in the satellite communications sector.

After these investments became known, Eutelsat shares appreciated 10%.