European aerospace firms Airbus, Leonardo, and Thales have agreed to merge their satellite and space systems businesses into a single European company that will compete with global giants, such as SpaceX’s Starlink.
The new entity will be pooling the three companies’ respective manufacturing, digital, and services divisions to build what executives described as a unified and competitive player on the world stage. It is expected to employ about 25,000 people across Europe and generate annual sales of roughly 6.5 billion euros ($7.5 billion) based on 2024 pro forma figures.
The companies forecast mid-triple-digit million euros in annual operating synergies within five years of closing, with integration costs in line with industry benchmarks.
The combined entity, which Airbus, Leonardo, and Thales stated could be operational in 2027, will compete with global rivals, including SpaceX’s Starlink, which continues to expand its global footprint.
Airbus CEO Guillaume Faury, Leonardo CEO Roberto Cingolani, and Thales CEO Patrice Caine said in a joint statement that the 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,” the statement reads. “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.”
The executives noted that the 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.
“It offers employees the opportunity to be at the heart of this ambitious initiative, while benefiting from enhanced career prospects and the collective strength of the three industry leaders,” the statement reads.
Under the plan, Airbus will contribute its Space Systems and Space Digital businesses; Leonardo will provide its Space Division, including stakes in Telespazio and Thales Alenia Space; and Thales will add its shares in Thales Alenia Space, Telespazio, and Thales SESO.
Ownership of the new entity will be split three ways: Airbus will hold 35 percent, while Leonardo and Thales will each take 32.5 percent. The venture will be governed jointly under a balanced structure reflecting the shared control.
Officials said the combination would create a comprehensive portfolio of technologies spanning space infrastructure and services, although not including launch vehicles, and unlock fresh opportunities for collaboration across Europe’s fragmented space landscape. The project is also expected to deliver new revenues through a broader range of end-to-end products and services and improved access to export markets.
Executives said the merged group would be able to invest more efficiently in next-generation satellites and services, from secure military communications to commercial broadband platforms.
According to the companies, the goal is to give Europe the “critical mass” to compete globally and grow export markets.
According to their joint statement, the companies’ employee representatives will be consulted on the new project, “according to the laws of involved countries and the collective agreements applicable at each parent company.”
