SES-CEO Adel Al-Saleh / © RTL
In the wake of the announcement regarding the acquisition of its competitor IntelSat by Luxembourg-based satellite operator SES, it has been confirmed that the company's headquarters will continue to be situated in Luxembourg.
SES's announcement on Tuesday that it was taking over its rival IntelSat did not arouse any particular enthusiasm on the stock markets.
While SES's takeover of IntelSat, announced on Tuesday, did not generate significant market excitement, within Betzdorf, SES's management expresses pride in the acquisition and remains optimistic about its prospects for success. SES CEO Adel Al-Saleh highlights the competitive nature of the industry and views the acquisition as a strategic move, positioning SES as a robust player "across multiple orbits."
While trade unions voice concerns over potential job losses resulting from the merger, the company's leadership acknowledges the possibility of workforce adjustments. Al-Saleh emphasises the potential for synergies between the two entities, suggesting that while uncertainties regarding staffing levels may arise, the overall outlook is "very exciting" for employees.
SES headquarters to remain in Luxembourg, Luc Frieden confirms
Prime Minister Luc Frieden confirmed on Thursday, during a session of questions and answers in the Chamber of Deputies, that the headquarters of satellite operator SES will continue to be based in Luxembourg. Frieden assured that the majority of jobs will remain in Betzdorf, stating, "Those who are currently employed there will remain there in the future."
Frieden clarified that the fact that SES is acquiring IntelSat, rather than merging with the US company, means that there will be no changes to the shareholder landscape, with the Luxembourg State retaining all voting rights and a blocking minority as stipulated in SES's articles of association.
However, Frieden acknowledged the potential for future changes, particularly in an industry undergoing transition due to evolving market dynamics. He highlighted the increasing competition from new providers such as Starlink, which Frieden described as "thousands of small satellites, […] sent around the world mainly by US entities like Amazon and Space X, which fly at different altitudes, and which therefore also offer services at different price points."
In response to these market pressures, SES is contemplating reorganisation efforts aimed at ensuring long-term viability and enhancing competitiveness.
Opportunities in defence
Frieden emphasised potential opportunities in the military sector resulting from the acquisition, noting IntelSat's expertise in Internet communications with aircraft and ships.
The integration of SES's existing presence in the defence sector with IntelSat's capabilities opens new avenues, not only for Luxembourg's defence but also for European and NATO defence initiatives.
Full report by RTL Télé (in Luxembourgish)
