France Blocks Eutelsat Antenna Sale, Citing National Security Concerns
GeokHub
Paris | Jan. 30 (GeokHub) France has intervened to block satellite operator Eutelsat from selling part of its ground infrastructure, underscoring growing European sensitivity around space-based communications and strategic autonomy.
Finance Minister Roland Lescure confirmed that he personally stopped the planned sale of Eutelsat’s ground antennas earlier this week, citing national security concerns linked to their military and civilian use.
“These antennas are used for both civilian and military communications,” Lescure said in a televised interview. “Eutelsat is the only European competitor to Starlink. That makes it a strategic asset.”
Why the Sale Was Blocked
Eutelsat had planned to sell its passive ground infrastructure — antennas that connect satellites to terrestrial networks — to Swedish private equity firm EQT. The transaction, first announced in 2024, was expected to raise around €550 million in net proceeds.
However, French authorities determined that the assets were too sensitive to transfer to a foreign buyer. Ground antennas are considered “dual-use” infrastructure, meaning they can support both civilian connectivity and military communications.
France is Eutelsat’s largest shareholder, holding just under 30% of the company.
Impact on Eutelsat
Eutelsat confirmed that the sale will not go ahead. Its shares fell sharply following the announcement.
The company said it would offset the loss of proceeds through cost savings, predicting a 5% improvement in profit margins over the next three years as it will no longer lease the infrastructure.
Eutelsat also maintains a close relationship with the French military, having signed a 10-year contract worth €1 billion last year to provide satellite services to the armed forces.
Europe’s Strategic Space Moment
The decision highlights Europe’s increasing focus on protecting critical space and communications infrastructure as geopolitical tensions rise and competition intensifies with U.S. players such as Elon Musk’s Starlink.
Lescure stressed that the decision was not a reflection on the potential buyer, but purely a matter of national sovereignty.
“This decision is exclusively linked to the critical nature of this activity for French sovereignty,” he said.
Other Defense Moves
The finance minister also confirmed France’s approval of the sale of aerospace defense firm LMB Aerospace to U.S.-based Loar Holdings, noting that the state will retain a so-called “golden share” and that production will remain in France.
Efforts to find a French or European buyer for LMB Aerospace were unsuccessful, Lescure added.
