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Three leading EU-based aerospace firms—Airbus, Leonardo, and Thales Group—have sealed a strategic deal to combine their space-related businesses. This collaboration aims to form a unified pan-European tech company capable of competing with Elon Musk's SpaceX.

Economic Details and Stake Structure

This resulting company is projected to generate yearly sales of around €6.5bn (5.6 billion pounds). Under the arrangement, the French aerospace giant Airbus will hold a 35% share in the venture. Meanwhile, both Italy's Leonardo and Thales will each own 32.5% shares.

Scale and Goals of the Joint Enterprise

The unnamed merger constitutes one of the biggest partnerships of its kind across Europe. It will unite diverse expertise in satellite manufacturing, spacecraft systems, parts, and support services from leading aerospace and defence manufacturers.

The CEO of Airbus, Roberto Cingolani, and Thales's CEO jointly stated, “The new company marks a pivotal step for Europe's space industry.” They continued, “Through combining our expertise, assets, expertise, and R&D strengths, we aim to generate growth, accelerate progress, and provide greater benefits to our customers and stakeholders.”

Business Details and Timeline

This new company will be based in Toulouse and have a workforce of approximately twenty-five thousand people. The entity is planned to be operational in 2027, pending regulatory clearances. According to the companies, it is expected to yield “mid-triple digit” millions of euros in cost savings on operating income each year, beginning following a five-year timeframe.

Background and Motivation

Reports indicate that talks between Airbus, Leonardo, and Thales began the previous year. The move seeks to mirror the structure of the European missile manufacturer MBDA, which is jointly held by Airbus, Leonardo, and BAE Systems.

Despite significant workforce reductions in their space divisions in recent years, the firms stated that there would be no immediate site closures or layoffs. However, they noted that labor representatives would be consulted throughout the project.

Recent Struggles in Space-Related Operations

These companies have faced setbacks in their space ventures recently. Last year, Airbus recorded 1.3 billion euros in losses from unprofitable space contracts and revealed two thousand job cuts in its defense and space division. Similarly, Thales Alenia Space, a partnership of Thales and Leonardo, eliminated over one thousand positions the previous year.

Global Market Environment

Meanwhile, the SpaceX company, established in 2002, has expanded to become one of the biggest private companies globally, with a market value of {$400 billion dollars. SpaceX dominates both the space launch and satellite-based internet sectors. Its main rivals include other American companies such as United Launch Alliance, a partnership between Boeing and Lockheed Martin, and Blue Origin, founded by technology billionaire Jeff Bezos.

Just this month, the company successfully flew its eleventh Starship from Texas, touching down in the Indian Ocean. Earlier in August, American President Donald Trump approved an executive order to simplify space launches, easing regulations for private space companies.