Select Language:
European aerospace companies announced a preliminary agreement on Thursday to combine their struggling satellite manufacturing operations, following months of negotiations aimed at challenging the rapid expansion of competitors led by Elon Musk’s Starlink.
This highly anticipated deal between Airbus, Thales, and Leonardo intends to establish a new joint venture starting in 2027, pending approval from European authorities, who have historically been cautious about such mergers.
The new, unnamed company is expected to employ approximately 25,000 workers across Europe and generate around 6.5 billion euros ($7.58 billion) in annual revenue based on 2024 estimates, according to a joint statement from the firms.
Ownership will be divided with Airbus holding 35%, while Thales and Leonardo will each own 32.5%. The partnership is designed to operate with shared control and a balanced governance structure.
This collaboration anticipates creating “mid-triple digit” millions of euros annually in operating synergies within five years, the companies noted.
Code-named “Project Bromo,” the discussions began last year with the goal of emulating the cooperation model of MBDA, the European missile manufacturer owned by Airbus, Leonardo, and BAE Systems.
Europe’s leading satellite manufacturers have long vied to develop complex geostationary orbit spacecraft but are now facing competition from inexpensive small satellites in low Earth orbit.
The CEOs of the three companies emphasized in a joint statement that the merger would support European governments in maintaining autonomy across strategic space domains.
The deal will consolidate the manufacturing and service operations of Thales Alenia Space and Telespazio — two joint ventures between Leonardo and Thales — along with various Airbus space and digital units, plus remaining space assets owned by Leonardo and Thales SESO.
While these companies have already reduced their combined workforce by around 3,000 jobs in space-related activities, there was no mention of further layoffs; union representatives will be involved in consultations.
Earlier this week, Reuters reported that the three firms had reached an initial framework for a satellite business merger.
The agreement was strengthened after summer obstacles related to governance and valuation were resolved, despite past tensions among the companies.
ChatGPT
Perplexity
Gemini AI
Grok AI
