Eutelsat’s planned €550 million sale of its satellite ground infrastructure to a fund managed by Stockholm-based EQT Group has not received the necessary regulatory approval, with France’s finance minister stating it was a “decision to protect our sovereignty.”
EQT announced in August 2024 that it had entered into negotiations to purchase a majority stake in Eutelsat’s ground infrastructure. Under the agreement, passive assets, including land, buildings, support infrastructure, antennas, and connectivity circuits, would be carved out and a new company formed. EQT would hold an 80% stake in the company, while Eutelsat would retain a 20% share and commit to entering into a long-term service agreement, becoming an anchor customer for the new company. At the time, the company explained that the transaction would be subject to customary regulatory conditions and approval.
In a 29 January release, Eutelsat confirmed that the transaction would not go ahead, stating that “all conditions precedent have not been satisfied.” While the company did not provide any additional details, a statement from the country’s Minister of the Economy, Finance, and Industrial and Digital Sovereignty, Roland Lescure, revealed that it had not proceeded because it had not received regulatory approval.
“I have decided not to authorise the sale of Eutelsat’s ground antennas,” said Lescure. “These antennas are a strategic infrastructure for civilian communications and for our armed forces. A clear decision to protect our sovereignty.”
According to Eutelsat, while it will lose out on the €550 million in upfront proceeds, the company will also avoid the €75 million to €80 million per-year cost that would have come with the expected service agreement.
The company explained that the failed sale would have “no impact on Financial Objectives for FY 2025-26” and that it would also “not affect Eutelsat’s ability to fund the capital expenditure related to its strategic growth trajectory.” This includes expanding its OneWeb constellation, with the company recently signing a contract with Airbus Defence and Space for 340 additional OneWeb satellites.
While it downplayed the impact, the company added that, for FY 2025-26, its expected Net Debt to EBITDA (earnings before interest, taxes, depreciation, and amortization) would be raised from 2.5 times to 2.7 times. This is significant because the company’s debt load has been a key consideration in its long-term outlook.
In February 2025, a Goldman Sachs report downgraded Eutelsat from Neutral to Sell, citing competitive pressures, an increasing debt load of $3.47 billion, and execution risks related to both OneWeb and its involvement in the SpaceRISE consortium, which has been tapped to deliver the European Union’s IRIS2 secure communications constellation.
The sale of its satellite ground infrastructure business was one element of Eutelsat’s push to reduce its debt load. The company also completed a €1.5 billion capital raise in 2025 to aid its efforts. The capital increase was led by the French government, which has also committed to acting as an anchor customer for the company’s OneWeb services.
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