🔗 Share this article

Three leading EU-based space technology companies—Airbus, Leonardo, and Thales—have finalized a strategic deal to merge their space businesses. The collaboration seeks to form a unified pan-European technology enterprise poised of rivaling with Elon Musk's SpaceX.

Financial Aspects and Ownership Breakdown

The newly formed company is expected to achieve yearly revenue of around €6.5bn (£5.6bn). As per the terms, the French aerospace giant Airbus will control a 35% stake in the venture. At the same time, both Leonardo and France's Thales will each own thirty-two point five percent shares.

Scale and Goals of the Joint Enterprise

The yet-to-be-named alliance constitutes one of the largest consolidations of its type across Europe. It will bring together various capabilities in satellite manufacturing, spacecraft systems, components, and services from leading aerospace and defence producers.

The CEO of Airbus, Leonardo's chief executive, and Patrice Caine jointly declared, “This new company represents a pivotal step for the European space sector.” The executives continued, “Through pooling our expertise, resources, knowledge, and R&D strengths, we intend to generate growth, speed up progress, and deliver enhanced value to our customers and partners.”

Operational Details and Schedule

The combined firm will be headquartered in Toulouse, France and employ approximately 25,000 people. It is planned to be operational in 2027, pending regulatory approvals. As per the companies, it is expected to yield “mid-triple digit” euros in millions in cost savings on operating income each year, starting after a five-year period.

Context and Motivation

Reports suggest that talks between Airbus, Leonardo, and Thales began last year. The initiative aims to replicate the structure of the European missile manufacturer MBDA, which is owned by Airbus, Leonardo, and BAE Systems.

Despite significant job cuts in their space-related units in the past few years, the companies assured that there would be zero immediate site closures or layoffs. However, they confirmed that labor representatives would be engaged during the project.

Recent Challenges in Space-Related Operations

These firms have encountered difficulties in their space ventures recently. Last year, Airbus recorded 1.3 billion euros in losses from underperforming space projects and revealed two thousand redundancies in its defence and space division. In a similar vein, Thales Alenia Space, a partnership between Thales and Leonardo, cut over one thousand jobs the previous year.

Global Market Landscape

Meanwhile, the SpaceX company, founded in 2002, has expanded to emerge as one of the largest private companies worldwide, with a valuation of {$400 billion dollars. It dominates both the space launch and satellite-based internet markets. Its main rivals are other US companies such as United Launch Alliance, a partnership between Boeing and Lockheed Martin, and Blue Origin, founded by technology billionaire Jeff Bezos.

Earlier recently, the company successfully flew its 11th Starship rocket from Texas, landing in the Indian Ocean. Earlier in August, US President Donald Trump approved an presidential directive to streamline space launches, relaxing rules for private space companies.