🔗 Share this article

Three leading European space technology companies—the Airbus Group, Leonardo S.p.A., and Thales Group—have now finalized a major deal to combine their space-related businesses. This partnership aims to establish a unified European tech company poised of competing with Elon Musk's SpaceX.

Economic Details and Ownership Breakdown

This resulting entity is projected to achieve yearly revenue of approximately 6.5 billion euros (5.6 billion pounds). As per the terms, Airbus will hold a 35% share in the new business. Meanwhile, both Italy's Leonardo and Thales will each own 32.5% shares.

Scope and Goals of the New Company

This yet-to-be-named merger represents one of the largest partnerships of its type across the European continent. It will bring together various expertise in satellite manufacturing, spacecraft systems, components, and services from leading defense and aerospace manufacturers.

The CEO of Airbus, Leonardo's chief executive, and Patrice Caine collectively stated, “This new company represents a pivotal milestone for Europe's space sector.” They continued, “Through combining our talent, assets, knowledge, and research and development strengths, we aim to drive growth, accelerate innovation, and deliver enhanced value to our customers and partners.”

Business Information and Schedule

The combined firm will be headquartered in Toulouse, France and employ about twenty-five thousand people. The entity is scheduled to become operational in 2027, pending regulatory approvals. As per the partners, it is expected to generate “mid-triple digit” euros in millions in cost savings on annual profit per year, beginning after a five-year period.

Context and Motivation

Sources indicate that talks between Airbus, Leonardo, and Thales began the previous year. The move seeks to replicate the structure of the European missile manufacturer MBDA, which is jointly held by Airbus, Leonardo, and BAE Systems.

Despite significant job cuts in their space divisions in recent years, the firms stated that there would be no immediate site closures or layoffs. However, they confirmed that unions would be engaged throughout the project.

Past Struggles in Space-Related Business

These companies have faced setbacks in their space ventures in recent times. The previous year, Airbus incurred 1.3 billion euros in losses from unprofitable space contracts and announced two thousand job cuts in its defence and space division. Similarly, the Thales Alenia Space joint venture, a collaboration of Thales and Leonardo, cut more than one thousand jobs the previous year.

Worldwide Competitive Environment

Meanwhile, Elon Musk's SpaceX, established in 2002, has grown to become one of the biggest private companies worldwide, with a valuation of {$400 billion dollars. It leads both the space launch and satellite internet markets. Its primary rivals include additional American companies such as United Launch Alliance, a partnership of Boeing and Lockheed Martin, and Blue Origin, created by tech billionaire Jeff Bezos.

Earlier recently, the company launched its 11th Starship rocket from Texas, USA, touching down in the Indian Ocean. Earlier in August, US President Donald Trump signed an executive order to simplify space launches, easing regulations for private space companies.