European companies were at the center of two major corporate developments on Monday, with satellite operators SES and Eutelsat poised to receive billions of dollars from the United States for freeing up valuable wireless spectrum. At the same time, Irish energy distributor DCC Energy agreed to a £5.75 billion takeover by U.S. private equity firms KKR and Energy Capital Partners.

The transactions underscore another episode of governments paying heavily to secure scarce spectrum needed for next-generation wireless networks, while private equity firms continue targeting undervalued European listed companies.

Shares of Luxembourg-based SES rose 6.6%, while France’s Eutelsat gained 5.7% after the U.S. Federal Communications Commission (FCC) finalized an incentive program worth $6.3 billion to compensate satellite operators for relinquishing portions of the upper C-band spectrum for wireless communications.

Under the FCC allocation, SES will receive approximately 89% of the incentive pool, equivalent to about $5.6 billion, while Eutelsat will receive roughly 8%, or about $500 million. Canadian satellite operator Telesat will receive the remaining 3%.

The payments are designed to accelerate the migration of satellite services from portions of the C-band spectrum, allowing the frequencies to be repurposed for advanced mobile broadband networks. The FCC plans to auction 160 megahertz of upper C-band spectrum beginning on April 27, 2027, providing U.S. telecom operators with additional bandwidth to support expanding 5G services and future wireless technologies.

The compensation is tied to strict implementation milestones. Satellite operators must complete the primary spectrum transition by December 2030 to qualify for $4.9 billion in payments. An additional $1.4 billion will become available if the remaining transition work is completed by June 2031.

In addition to the incentive payments, the FCC will reimburse eligible relocation and transition expenses, estimated at between $4 billion and $5 billion.

Although SES is the clear financial winner, analysts caution that its headline payout will be reduced by taxes and obligations inherited from its acquisition of Intelsat.

JPMorgan estimates the net present value of the FCC incentives equates to roughly €6 per SES share, compared with less than €0.50 per Eutelsat share, highlighting the significantly greater impact on SES’s valuation.

However, the bank noted that SES must share part of the proceeds with Intelsat bondholders. Under prior agreements, those creditors are entitled to 42.5% of proceeds generated from the first 100 megahertz of cleared spectrum, amounting to approximately $1.1 billion, before taxes.

Beyond benefiting satellite operators, the FCC decision also signals substantial future spending by U.S. telecommunications companies. JPMorgan estimates wireless operators could spend around $25 billion during spectrum auctions scheduled for 2027 and 2028, potentially limiting their ability to return capital to shareholders through share buyback programs.

The spectrum release comes as mobile operators seek additional capacity to accommodate rapidly growing data consumption driven by artificial intelligence applications, cloud services, video streaming and increasingly connected devices.

DCC Energy Accepts £5.75 Billion Takeover Offer

Separately, Irish energy distributor DCC Energy agreed to be acquired by a consortium comprising U.S. investment firms KKR and Energy Capital Partners in a transaction valued at £5.75 billion ($7.68 billion).

The deal adds to a growing wave of foreign acquisitions targeting UK-listed companies, many of which continue to trade at valuation discounts relative to international peers.

Under the agreed terms, DCC shareholders will receive:

• £65.25 per share in cash
• A proposed final dividend of 147.22 pence per share
• A potential additional payment of up to £1.25 per share if DCC successfully sells its Nexora technology business for at least $800 million

The offer represents more than a 26% premium to DCC’s closing share price on April 28, the day before the consortium submitted its initial proposal.

However, private markets are seeing value where public markets did not.

Chief Executive Donal Murphy said the decision reflected persistent undervaluation of the company despite extensive restructuring efforts.

“We’ve simplified the group, spent a huge amount of time on the investor relations circuit and that really hasn’t translated into the value that private capital is willing to put on our business,” Murphy told Reuters.

Over recent years, DCC has streamlined its operations by exiting healthcare and technology businesses while expanding its core energy distribution operations through acquisitions in Europe’s liquefied petroleum gas (LPG) market.

Murphy acknowledged that some shareholders had initially opposed earlier offers but said one major investor had since substantially reduced its holding at prices below the consortium’s final bid, leaving the board confident that shareholders would approve the transaction.

DCC shares rose 1.3% following the announcement, trading slightly below the offer price, indicating investors largely expect the acquisition to proceed.

Together, the two announcements highlight how strategic assets continue to command significant value across sectors. Scarce radio spectrum is increasingly becoming a monetizable asset for satellite operators, as governments race to expand wireless network capacity.

For listed European companies, continued valuation discounts relative to U.S. peers are attracting private equity firms willing to pay substantial premiums for businesses they believe can generate greater long-term value outside public markets.

Gold prices climbed more than 1% on Monday as easing tensions in the Middle East sent oil prices sharply lower, weakened the U.S. dollar and prompted investors to scale back expectations for near-term U.S. interest rate increases ahead of this week’s Federal Reserve policy meeting.

The rebound indicates that investor sentiment has rapidly shifted from inflation fears to expectations of a more benign policy environment after Washington and Tehran signaled a pause in hostilities, easing concerns that the conflict would further disrupt global energy supplies.

Spot gold rose 1.3% to $4,103.59 an ounce by 0723 GMT, while U.S. gold futures gained 0.9% to $4,106.00.

“Gold is a clear beneficiary today of the dual price action in oil and the U.S. dollar,” said Tim Waterer, chief market analyst at KCM Trade.

The gains came after Iran said it would halt its attacks as long as the United States did the same, following Washington’s decision to pause its bombing campaign. The de-escalation triggered a broad risk-on move across financial markets, with Brent and U.S. crude prices tumbling more than 6% as fears of supply disruptions through the Strait of Hormuz eased.

But the decline in oil prices carries broader implications for monetary policy. Higher crude prices typically filter through to transportation, manufacturing and consumer costs, raising inflationary pressures that can compel central banks to keep interest rates elevated for longer. Lower energy prices, by contrast, ease those inflation risks and reduce pressure on policymakers to tighten monetary policy.

That shift benefited gold, which has struggled in recent months as rising oil prices fueled expectations that the Federal Reserve would maintain restrictive monetary policy. While gold is widely viewed as a store of value during periods of inflation and geopolitical uncertainty, higher interest rates increase the opportunity cost of holding the non-yielding asset, often limiting its upside.

Another major tailwind came from the currency market.

The U.S. dollar weakened against most major peers after the pause in hostilities improved investor confidence, reducing demand for the safe-haven greenback. The dollar index fell as much as 0.3% during Asian trading, making dollar-denominated bullion less expensive for overseas buyers and increasing its appeal.

Against the Japanese yen, the dollar slipped 0.2% to 163.585, its biggest decline since July 10. The euro advanced 0.3% to $1.1403, while sterling gained 0.2% to $1.3352.

Although the dollar index later steadied around 101.21, analysts said geopolitical developments remain the dominant driver of both currency and commodity markets.

“Markets remain on the edge around the U.S.-Iran conflict and the path of oil prices,” analysts at MUFG wrote in a research note.

“While it is difficult to know for sure how things will pan out, our base case remains for de-escalation over time for several reasons and as such for oil prices to decline.”

Investor attention is now firmly focused on the Federal Reserve’s July 28-29 policy meeting, which is expected to provide fresh guidance on the outlook for U.S. interest rates. The central bank is widely expected to leave its benchmark rate unchanged this week, but markets are closely watching Chair Jerome Powell’s comments for clues on whether policymakers remain concerned about inflation risks or are becoming more confident that price pressures are easing.

Interest-rate expectations moderated slightly following the decline in oil prices.

Fed funds futures now imply a 33.7% probability of a 25-basis-point rate increase at the conclusion of this week’s meeting, down from 37.4% on Friday, according to CME Group’s FedWatch Tool. However, traders continue to price in a roughly 74% chance of another increase at the September meeting, suggesting markets still expect the Fed to retain a tightening bias.

The combination of falling Treasury yield expectations, a softer dollar and geopolitical uncertainty continues to provide a supportive backdrop for bullion, even as investors await greater clarity from the Fed.

Waterer said gold’s near-term direction will remain closely linked to developments in energy markets and geopolitical headlines.

“Longer term, I remain constructively bullish on gold. Gold’s immediate fate is closely tied to where oil prices head from here and the path higher is likely to remain volatile and heavily influenced by geopolitical headlines until a more durable peace takes hold,” he said.

From a technical perspective, Reuters market analyst Wang Tao said spot gold could retest resistance around $4,117 after holding above key support at $4,038 and staging a strong rebound, suggesting bullish momentum remains intact if the support level continues to hold.

The rally extended across the broader precious metals complex.

Spot silver surged 2.7% to $59.74 an ounce, outperforming gold as investors returned to industrial and precious metals. Platinum jumped 3.5% to $1,643.70, while palladium gained 3.4% to $1,285.00, reflecting renewed appetite for cyclical assets following the easing of geopolitical tensions.

Risk appetite also lifted digital assets. Bitcoin rose 1% to $65,286.74, while ether advanced 1.7% to $1,945.22 as investors rotated back into higher-risk investments amid improving global market sentiment.

Currently, investors remain caught between two powerful forces: geopolitical developments that continue to influence safe-haven demand and energy prices, and the Federal Reserve’s policy outlook, which will shape the trajectory of the U.S. dollar, Treasury yields and, ultimately, the next move in gold.