PARIS -- With the final U.S. government regulatory approval now secured, Intelsat will complete its purchase of PanAmSat on July 3, Intelsat announced June 20.

 

The merger will create the world's largest commercial satellite-fleet operator, ahead of SES Global of Luxembourg, which itself has grown larger this year with the purchase of competitor New Skies.

 

The last regulatory hurdle, that of the U.S. Federal Communications Commission, was cleared June 19 when the agency gave the go-ahead. There had been no public opposition to the deal from among Intelsat's competitors.

 

Bermuda-headquartered, Washington-based Intelsat is paying $3.2 billion in cash and assuming $3.2 billion in PanAmSat debt. The combined company will have a fleet of 52 satellites and pro-forma 2005 revenues of $2.03 billion.

 

"The closing of the merger will open a new chapter for our industry and our customers, who will benefit from expanded services and improved network flexibility," Intelsat Chief Executive David McGlade said in a June 20 statement.