A trio of prominent EU-based space technology firms—Airbus, Leonardo S.p.A., and Thales—have now finalized a major agreement to combine their space-related operations. The partnership aims to form a single European technology company poised of competing with Elon Musk's SpaceX venture.
Financial Details and Stake Breakdown
This newly formed company is projected to achieve annual sales of approximately €6.5bn (£5.6bn). Under the arrangement, Airbus will hold a 35% stake in the venture. At the same time, both Italy's Leonardo and France's Thales will respectively retain 32.5% shares.
Scale and Goals of the Joint Company
This unnamed merger represents one of the biggest partnerships of its kind across the European continent. It will unite various expertise in building satellites, spacecraft systems, parts, and services from leading defense and aerospace manufacturers.
Guillaume Faury, Leonardo's chief executive, and Thales's CEO collectively declared, “The new venture represents a crucial milestone for Europe's space sector.” They added, “Through combining our talent, resources, expertise, and R&D capabilities, we intend to generate expansion, accelerate progress, and provide greater value to our clients and stakeholders.”
Business Information and Schedule
The new company will be based in Toulouse, France and employ approximately 25,000 people. It is planned to be operational in 2027, following necessary clearances. According to the companies, it is expected to generate “hundreds of” euros in millions in synergies on operating income per year, starting following a five-year period.
Background and Reasons
Sources suggest that talks between Airbus, Leonardo, and Thales began the previous year. The initiative seeks to mirror the structure of MBDA, which is owned by Airbus, Leonardo, and BAE Systems.
Although substantial workforce reductions in their space divisions in the past few years, the companies assured that there would be zero immediate site closures or job losses. However, they confirmed that labor representatives would be consulted throughout the process.
Recent Challenges in Space-Related Business
These companies have faced difficulties in their space ventures in recent times. The previous year, Airbus recorded €1.3bn in losses from underperforming space projects and announced 2,000 redundancies in its defense and space division. In a similar vein, the Thales Alenia Space joint venture, a partnership of Thales and Leonardo, cut over 1,000 positions the previous year.
Worldwide Market Landscape
Meanwhile, the SpaceX company, established in 2002, has grown to emerge as one of the biggest private companies worldwide, with a market value of {$$400bn. It dominates both the rocket launch and satellite internet sectors. Its primary rivals are other US companies such as United Launch Alliance, a joint venture between Boeing and Lockheed Martin, and Blue Origin, founded by tech billionaire Jeff Bezos.
Earlier this month, SpaceX successfully flew its eleventh Starship from Texas, touching down in the Indian Ocean. In August, American President Donald Trump signed an presidential directive to simplify space launches, easing regulations for private space companies.
