🔗 Share this article

A trio of prominent EU-based space technology companies—Airbus, Leonardo, and Thales Group—have sealed a strategic deal to merge their space businesses. The partnership aims to establish a single European technology enterprise capable of competing with the SpaceX.

Economic Aspects and Ownership Structure

This newly formed entity is projected to achieve yearly revenue of approximately €6.5bn (£5.6bn). Under the arrangement, the French aerospace giant Airbus will control a 35% share in the new business. At the same time, both Italy's Leonardo and France's Thales will each own thirty-two point five percent shares.

Scale and Objectives of the Joint Enterprise

This unnamed merger constitutes one of the largest consolidations of its type across Europe. It will bring together diverse expertise in satellite manufacturing, space systems, components, and services from top defense and aerospace producers.

Guillaume Faury, Roberto Cingolani, and Thales's CEO jointly declared, “The joint company marks a pivotal milestone for the European space sector.” The executives continued, “By pooling our talent, assets, knowledge, and research and development capabilities, we intend to drive expansion, speed up innovation, and deliver enhanced value to our customers and partners.”

Operational Information and Timeline

The combined firm will be based in Toulouse, France and have a workforce of about 25,000 people. The entity is scheduled to be operational in 2027, pending necessary approvals. As per the partners, it is projected to generate “hundreds of” millions of euros in cost savings on annual profit each year, beginning following a five-year timeframe.

Background and Motivation

Sources indicate that discussions among Airbus, Leonardo, and Thales started last year. The move seeks to mirror the model of the European missile manufacturer MBDA, which is owned by Airbus, Leonardo, and BAE Systems.

Although significant job cuts in their space-related units in recent years, the companies assured that there would be no immediate facility shutdowns or layoffs. However, they confirmed that unions would be consulted during the process.

Past Challenges in Space-Related Operations

These firms have faced setbacks in their space ventures recently. The previous year, Airbus incurred 1.3 billion euros in losses from unprofitable space projects and announced two thousand redundancies in its defense and space division. In a similar vein, the Thales Alenia Space joint venture, which is a partnership between Thales and Leonardo, eliminated over 1,000 positions the previous year.

Worldwide Competitive Environment

Meanwhile, the SpaceX, established in 2002, has expanded to emerge as one of the biggest private companies globally, with a market value of {$400 billion dollars. SpaceX dominates both the space launch and satellite internet markets. Its primary competitors include other US firms such as United Launch Alliance, a partnership between Boeing and Lockheed Martin, and Blue Origin, created by tech tycoon Jeff Bezos.

Earlier this month, SpaceX successfully flew its 11th Starship rocket from Texas, landing in the Indian Ocean. Earlier in August, American President Donald Trump signed an executive order to streamline rocket launches, relaxing rules for commercial space companies.