🔗 Share this article

A trio of prominent EU-based space technology companies—Airbus, Leonardo, and Thales—have now sealed a major deal to combine their space-related operations. This partnership aims to form a single pan-European technology enterprise poised of rivaling with Elon Musk's SpaceX venture.

Financial Aspects and Stake Breakdown

This resulting company is projected to generate annual revenue of approximately 6.5 billion euros (5.6 billion pounds). As per the terms, the French aerospace giant Airbus will hold a thirty-five percent share in the venture. At the same time, both Italy's Leonardo and France's Thales will each retain 32.5% ownership.

Scope and Objectives of the New Enterprise

This yet-to-be-named merger represents one of the largest consolidations of its kind across the European continent. It will bring together various expertise in building satellites, spacecraft systems, components, and support services from top defense and aerospace manufacturers.

Guillaume Faury, Leonardo's chief executive, and Thales's CEO jointly stated, “The new venture marks a pivotal step for the European space sector.” The executives continued, “By combining our expertise, resources, knowledge, and research and development strengths, we intend to drive growth, speed up progress, and provide greater value to our customers and partners.”

Operational Details and Timeline

The combined company will be based in Toulouse and employ about 25,000 people. The entity is planned to become fully functional in the year 2027, pending necessary clearances. According to the partners, it is projected to yield “hundreds of” euros in millions in synergies on annual profit per year, beginning following a five-year period.

Context and Motivation

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

Despite significant job cuts in their space divisions in the past few years, the companies assured that there would be zero immediate site closures or layoffs. However, they confirmed that unions would be consulted throughout the project.

Past Struggles in Space-Related Business

These firms have faced setbacks in their space ventures recently. Last year, Airbus incurred €1.3bn in charges from underperforming space contracts and revealed 2,000 job cuts in its defence and space sector. Similarly, the Thales Alenia Space joint venture, which is a collaboration of Thales and Leonardo, cut over 1,000 positions last year.

Worldwide Competitive Environment

At the same time, the SpaceX company, founded in 2002, has grown to become one of the biggest private companies globally, with a market value of {$400 billion dollars. SpaceX leads both the rocket launch and satellite-based internet markets. Its primary rivals are additional US firms such as United Launch Alliance, a partnership of Boeing and Lockheed Martin, and Blue Origin, founded by technology billionaire Jeff Bezos.

Just recently, the company successfully flew its 11th Starship rocket from Texas, USA, touching down in the Indian Ocean. Earlier in August, US President Donald Trump approved an executive order to streamline space launches, relaxing rules for private space companies.