The French government is increasing its stake in satellite operator Eutelsat from 13 percent to just under 30 percent through a capital increase of 1.35 billion euros, expected to be finalized by the end of 2025.

Other major investors in this capital raise include shipping giant CMA CGM and Indian telecom operator Bharti Airtel, with potential interest from the British government, which currently holds a 10.9% stake in Eutelsat.

Ongoing discussions involving the British government indicate a collaborative approach to the capital increase, which is seen as vital for Eutelsat's future competitiveness.

This strategic investment positions France as the largest shareholder in Eutelsat, aiming to bolster competition against Elon Musk's Starlink amid rising competition in the satellite communications sector.

The move aligns with European objectives for strategic autonomy in satellite communications, particularly in light of concerns over reliance on American technology, especially following the Ukraine conflict.

Eutelsat, which merged with British firm OneWeb in 2023, is now the world's second-largest operator of low Earth orbit satellites, operating over 600 satellites and striving to become a European leader in this sector.

The French government's investment is crucial to ensure Eutelsat remains competitive against the American Starlink constellation, which poses a significant challenge in the satellite communications market.

The capital increase will enhance Eutelsat's financial flexibility, allowing the company to renew its satellite fleet, restructure its debt, and invest in the next generation of OneWeb and the upcoming European sovereign constellation Iris2.

Recently, Eutelsat secured a 10-year, billion-euro contract to provide military communications for the French armed forces, highlighting its expanding role in both civilian and military sectors.

This investment underscores the French government's commitment to supporting domestic technology and satellite communication initiatives.

The investment will be managed by the State Shareholdings Agency (APE) as part of France's broader strategy to strengthen its position in the satellite communications market.

This announcement coincides with President Macron's visit to the International Aerospace and Space Salon, where he is expected to deliver a highly anticipated speech.