Paris prohibits major satellite company from selling equipment to Sweden

The French government has blocked a planned sale by Franco-British satellite communications company Eutelsat of its ground stations to Swedish private equity firm EQT Infrastructure VI, citing national security concerns.

French Finance Minister Roland Lescure announced on January 30 that the state had halted the €550 million transaction, according to an article by Euractiv.

The deal, first unveiled in August 2024, was formally abandoned after Eutelsat disclosed on January 29 that it would not proceed because “conditions precedent have not been satisfied”.

Explaining the government’s decision, Lescure said the company’s antennas constitute strategic assets, as they are used for both civilian and military purposes.

“Eutelsat is Starlink’s only European competitor,” he said, referring to SpaceX’s satellite network, which is controlled by Elon Musk and has drawn increased scrutiny due to his political activity.

Eutelsat, however, pushed back on the scope of the security concerns. A company spokesperson told Euractiv that the transaction related only to the passive elements of its ground-segment infrastructure, including “facilities, buildings, and site management” at ground stations, and did not involve active components such as “control systems and network equipment”.

Even so, Lescure’s remarks suggest that French authorities view comprehensive oversight of ground stations — from physical sites to operational control — as essential to national sovereignty.

Eutelsat said the collapse of the deal will “not impact” its ability to finance planned capital expenditures, including the purchase and launch of 440 additional satellites to replace aging OneWeb units, the spokesperson added.

The Paris-based company is the world's third-largest satellite operator by revenue and was formed in September 2024 through the merger of France's Eutelsat and Britain's OneWeb. It boasts a constellation of over 600 low Earth orbit satellites that serve broadcasters, telecom operators, and radio stations worldwide.

By Nazrin Sadigova