Global communications provider Intelsat has been informed by the United States Department of Justice that it is closing its antitrust investigation of Intelsat’s proposed merger with PanAmSat Holding Corporation. The Justice Department is not seeking any conditions on the proposed merger. The transaction remains under review by the US Federal Communications Commission.
“We are gratified that the Justice Department’s Antitrust Division, after a comprehensive review, agreed with us that the Intelsat-PanAmSat merger does not pose any threat to competition,” said Phillip Spector, EVP and General Counsel of Intelsat. “We demonstrated that the combination of Intelsat and PanAmSat will create powerful efficiencies, with complementary fleets assuring enhanced protection and flexibility for our diverse sets of customers.”
Intelsat’s CEO, David McGlade, said: “With the Justice Department’s decision not to challenge our transaction, we are moving full speed ahead with our integration planning and preparations.”
Intelsat and PanAmSat announced their merger agreement on August 29, 2005. Under the agreement, Intelsat will acquire PanAmSat for $25 per share in cash, or $3.2 billion. In addition, approximately $3.2 billion in debt of PanAmSat and its subsidiaries will remain outstanding or be refinanced.
