3 companies join forces to boost Europe’s space autonomy • The Register
Three European aerospace giants plan to combine their space units into a single heavyweight, hoping to boost the continent’s space autonomy.
The deal was announced on Thursday and has Airbus, Leonardo, and Thales signing a Memorandum of Understanding (MoU) to combine their respective space activities into one company.
According to Airbus, the aim is “to strengthen Europe’s strategic autonomy in space.”
“This new company also intends to serve as the trusted partner for developing and implementing national sovereign space programmes.”
Airbus, which will own 35 percent of the new company, will contribute its Space Systems and Space Digital businesses from Airbus Defence and Space. Leonardo, which will have a 32.5 percent stake, will contribute its Space Division. Thales, which will also hold a 32.5 percent stake, will contribute its shares in Thales Alenia Space, Telespazio, and Thales SESO.
The combined entity will employ approximately 25,000 people across Europe and have an initial annual turnover of about €6.5 billion (based on 2024 figures).
The new company, if it clears regulatory hurdles, is expected to be operational by 2027 and will, according to Airbus, “pool, build and develop a comprehensive portfolio of complementary technologies and end-to-end solutions, from space infrastructure to services (excluding space launchers).”
Despite pooling their resources, the entity formed by the three companies faces challenges. Even assuming the next two years of discussions with regulators and governments go well, competition in the market is fierce. The arrival of constellations of relatively cheap and simple satellites in low Earth orbit has caused a headache for Europe’s satellite makers, accustomed to building more complex spacecraft for geostationary orbit.
As if to hammer home the point, SpaceX recently passed the 10,000 milestone for Starlink satellites launched, although it is worth noting that approximately 8,600 are still in orbit. However, European worries about sovereignty and the need for an alternative to US companies have focused minds.
Airbus CEO Guillaume Faury, Leonardo CEO and GM Roberto Cingolani, and Thales Chair and CEO Patrice Caine said in a joint statement: “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.
“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.” ®
