LONDON (Reuters) -Britain will invest 163 million euros ($190.78 million) in French satellite group Eutelsat, it said on Thursday, as the two countries hold a summit in London as part of a state visit to deepen trade ties and cooperation on migration.
The British government said it would retain its 10.89% stake in Eutelsat, which competes with American billionaire Elon Musk’s Starlink.
The statement comes on the third day of French President Emmanuel Macron’s state visit to Britain.
In a written statement to parliament, the government said its investment was driven by three factors: improving national security, boosting Britain’s role in the low Earth orbit market and strengthening the domestic space sector.
“The global satellite communications market has evolved, and the importance of resilient space capabilities and services has grown,” technology minister Peter Kyle said.
He added that the investment would “establish a closer security and defence collaboration between the UK and France.”
With a recently-announced 1.35 billion-euro investment in the satellite operator, the French government is set to become its largest shareholder later this year, overtaking Indian billionaire Sunil Mittal’s Bharti Space.
($1 = 0.8544 euros)
(Reporting by Muvija M and Sam Tabahriti, editing by William James)
