The $7.3 billion acquisition of satellite competitor Inmarsat by Viasat (VSAT.O) has been referred for a thorough investigation by Britain's competition regulator, it was announced on Friday, raising the possibility that the transaction could be postponed.

The United States The purchase of the British business by Viasat was announced late last year, and a closing was anticipated for the second half of this year. However, the Competition and Markets Authority (CMA) has 24 weeks to finish its investigation.

The tie-up, according to the CMA, might limit competition in the aviation connection industry, forcing airlines to increase the cost of on-board Wi-Fi. The takeover has already received security clearance from British and American authorities.

While Inmarsat delivers satellite-based communications services to government agencies, the maritime and aviation industries, and residential, aviation, and defence customers in North America, Viasat offers connection services to these same markets.

Despite competition from Panasonic (6752.T) and Intelsat, who hold more than 75% of the long-haul market, the two businesses said they are still hopeful that the merger will be approved and boost the availability of reasonably priced in-flight Wi-Fi. In a joint statement, Viasat and Inmarsat stated that they would let the CMA know if there was any anticipated delay in the deal's conclusion.

The watchdog, for its part, stated that the agreement needs more research because, based on the information it currently has, it would entail a 'significant decrease of competition within a market or markets' in the UK.

In a joint statement, Viasat and Inmarsat stated that they would let the CMA know if there was any anticipated delay in the deal's conclusion.