Airbus, Leonardo, and Thales have agreed to a much-anticipated business deal that will see them pool their space businesses together.
Such a project has been under discussion for months now, as the European defence giants seek to establish a rival to SpaceX, Elon Musk’s US-based satellite and space exploration businesses.
Now, the three companies have signed a memorandum of understanding to build a new entity that combines their space businesses. It is hoped that the deal will improve operational agility and consolidate Europe’s position in the aerospace industry by establishing an autonomous alternative to SpaceX’s Starlink, the low-earth orbit (LEO) satellite connectivity project.
In a joint statement, Guillaume Faury, CEO Airbus, Roberto Cingolani, CEO Leonardo, and Patrice Caine, CEO Thales, said:
This proposed new company marks a pivotal milestone for Europe’s space industry. It embodies our shared vision to build a stronger and more competitive European presence in an increasingly dynamic global space market.
By pooling our talent, resources, expertise and R&D capabilities, we aim to generate growth, accelerate innovation and deliver greater value to our customers and stakeholders. This partnership aligns with the ambitions of European governments to strengthen their industrial and technological assets, ensuring Europe’s autonomy across the strategic space domain and its many applications
The new entity will have an annual turnover of €6.5 billion and employ 25,000 people. Regulators are expected to approve the deal, meaning the new business could be operational by 2027. Ownership will be shared between the three companies, with Airbus, Leonardo, and Thales holding 35%, 32.5%, and 32.5% respectively
Each company will contribute to the new entity as follows:
- Airbus: Space Systems and Space Digital businesses
- Leonardo: Space Division, including shares in Telespazio and Thales Alenia Space.
- Thales: Shares in Thales Alenia Space, Telespazio, and Thales SESO.
Full governance structures will be established in due course. The announcement will strengthen and centralise the European aerospace industry, while also offering new opportunities for innovation.
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