Inmarsat buyout probed

THe Government has inter- vened in the £ 2.5bn private equity buyout of Inmarsat.

Jeremy Wright, the Culture and Media Secretary, has ordered the Competition and Markets authority (CMa) to investigate whether the takeover of the satellite firm raises any concerns regarding national security or competition.

Inmarsat’s satellites are seen as critical national infrastructure – the firm provides services to the British and US militaries, among others.

The London-listed company is being taken private by a consortium called Connect, which includes British-based apax Partners, US-based Warburg Pincus and the Canada Pension Plan Investment Board.

That prompted a probe by the CMa, over fears it would reduce competition in the market, but last week it warned ministers the buyout may also affect matters of ‘ public interest’, including national security.

a Government spokesman confirmed that Wright agreed with the watchdog and had asked it to look into the matter further.

The CMa must report back to him by September 17 about any concerns. Wright will then decide whether a more detailed ‘phase two’ probe should be launched.

Insiders with knowledge of the buyout have played down security concerns, saying they do not expect it to be blocked. This is because the firms in the consortium are from countries that are part of the ‘Five eyes’ intelligencesharing partnership, which comprises the UK, US, Canada, australia and New Zealand.