UK Halts Exploration Company’s Acquisition of Orbex
The recent acquisition of the launch services startup Orbex by The Exploration Company has faced a significant setback. The UK government has chosen not to approve the transaction, as indicated by a spokesperson from The Exploration Company. This acquisition was announced on January 21, 2023, and was seen as vital for Orbex’s survival after its anticipated Series D funding round did not materialize.
Details of the Acquisition Attempt
The Exploration Company’s CEO, Hélène Huby, had expressed hopes that the partnership would enhance the UK’s launcher capabilities. However, on February 11, 2023, just weeks after announcing the potential acquisition, The Exploration Company initiated insolvency proceedings after all fundraising and merger efforts were unsuccessful.
Orbex’s own statements during this period did not address the failed acquisition directly. On February 13, 2023, a spokesperson for The Exploration Company hinted at the UK government’s role in the decision, stating that they respected the government’s process despite being disappointed by the outcome.
Government Response
In a statement to SpaceNews on February 11, the UK Space Agency commented on the challenging nature of the launch sector, acknowledging that some companies would succeed while others would fail. This sentiment echoed the latest developments in UK space policy.
- The UK government published a response to the House of Lords report on the space economy on January 30, 2023.
- The report emphasized the need for a sovereign launch capability due to security considerations.
- However, the government shifted focus towards ensuring “assured access” to launch services.
Future Prospects for Orbex
As the situation develops, Orbex’s CEO Phil Chambers announced on LinkedIn that the company is open to bids for its remaining assets. UK launch startup Skyrora has shown interest in acquiring specific Orbex assets, particularly the Sutherland Spaceport.
Skyrora aims to invest up to £10 million, contingent on successful discussions with administrators and necessary legal processes. Skyrora is also advancing its own projects, including the Skylark L suborbital rocket and a larger vehicle, Skyrora XL, designed for payloads up to 315 kilograms to low Earth orbit.
The Exploration Company’s Commitment to the UK
Despite the halted acquisition, The Exploration Company is still focused on establishing key operations in the UK. The company continues to work on its high-thrust rocket engine, previously named Typhoon and now called Storm, which is intended to produce 250 tonnes of thrust, comparable to engines developed by SpaceX.
Early co-financing was received from the French space agency, CNES, for this engine’s development. The Exploration Company remains committed to supporting Europe’s heavy launcher projects, as stated by CEO Hélène Huby.
The future of Orbex and The Exploration Company underscores the challenging dynamics in the space industry, where governmental policy and economic viability remain critical components of success.
