British satellite manufacturer OneWeb is to be taken over by the French

A British satellite maker backed by taxpayers is to be taken over by a French firm, dealing a blow to Britain’s efforts in the space race.

OneWeb, which currently operates a network of more than 400 satellites, was saved from bankruptcy by Boris Johnson’s government in 2020, leaving taxpayers with a 17 percent stake in the company.

But the company is now in talks to take over Paris-based Eutelsat, with a deal expected to be announced in the coming days, according to the Sunday Telegraph.

If the deal goes through, the firm is expected to be listed on the French stock market, although a secondary listing on the London Stock Exchange could be planned for a later date.

Eutelsat, which already controls about a quarter of OneWeb, is 20 percent owned by the French state, raising concerns that the company’s operations could be moved to France if the takeover is agreed.

A further 5 percent of Eutelsat is owned by China Investment Corp, Beijing’s sovereign wealth fund, meaning OneWeb will be partly owned by one of its strategic Western rivals.

Sources described the deal as a “French coup” that could reduce Britain’s influence on the project.