Satellite company SES to acquire IntelSat for $3.1 billion.

Satellite company SES SESG has agreed to acquire all shares of IntelSat Holdings for approximately $3.1 billion, as announced by the two companies on Tuesday.

European satellite companies have been exploring mergers to compete against Elon Musk's SpaceX Starlink and Amazon's Project Kuiper.

The new company post-merger will be headquartered in Luxembourg and maintain a significant presence in the USA, as stated by both companies.

"This transaction has been approved unanimously by the boards of directors of both companies, and Intelsat's shareholders, who own approximately 73% of the common stock, have entered into customary support agreements obligating them to vote in favor of the transaction," the two companies added.

This transaction will be financed by the issuance of new debt, including cash and diversified bonds.

SES's Paris-listed shares fell by about 4% as of 0723GMT.