Major EU Space Companies Join Forces to Create Rival to Elon Musk's SpaceX
A trio of prominent EU-based space technology companies—the Airbus Group, Leonardo S.p.A., and Thales—have sealed a strategic deal to merge their space-related businesses. The partnership aims to establish a unified pan-European technology enterprise capable of rivaling with Elon Musk's SpaceX venture.
Financial Details and Stake Structure
The newly formed company is projected to achieve yearly sales of around €6.5bn (£5.6bn). Under the arrangement, Airbus will hold a thirty-five percent stake in the new business. Meanwhile, both Italy's Leonardo and France's Thales will respectively retain 32.5% ownership.
Scale and Objectives of the Joint Company
The yet-to-be-named merger constitutes one of the largest partnerships of its kind across the European continent. It will bring together diverse expertise in building satellites, spacecraft systems, components, and services from top aerospace and defence producers.
Guillaume Faury, Roberto Cingolani, and Thales's CEO collectively stated, “This new venture marks a pivotal step for Europe's space sector.” They added, “Through pooling our talent, assets, expertise, and R&D strengths, we intend to drive expansion, speed up progress, and deliver greater benefits to our customers and stakeholders.”
Business Information and Schedule
The combined company will be based in Toulouse, France and have a workforce of approximately 25,000 employees. The entity is scheduled to become operational in 2027, following necessary clearances. According to the partners, it is expected to generate “mid-triple digit” millions of euros in synergies on annual profit each year, starting after a five-year period.
Background and Motivation
Reports suggest that discussions between Airbus, Leonardo, and Thales started the previous year. The move seeks to mirror the model of MBDA, which is jointly held by Airbus, Leonardo, and BAE Systems.
Although significant workforce reductions in their space-related divisions in recent years, the firms assured that there would be zero immediate site closures or job losses. However, they confirmed that labor representatives would be engaged throughout the process.
Past Challenges in Space Operations
The companies have faced setbacks in their space operations in recent times. The previous year, Airbus incurred €1.3bn in charges from unprofitable space projects and revealed two thousand job cuts in its defence and space division. Similarly, the Thales Alenia Space joint venture, which is a partnership of Thales and Leonardo, cut more than 1,000 jobs the previous year.
Worldwide Competitive Environment
At the same time, Elon Musk's SpaceX company, established in 2002, has grown to become one of the largest private companies globally, with a market value of {$$400bn. It leads both the space launch and satellite-based internet markets. Its main competitors include additional US firms such as United Launch Alliance, a partnership between Boeing and Lockheed Martin, and Blue Origin, founded by technology tycoon Jeff Bezos.
Just this month, SpaceX launched its 11th Starship from Texas, USA, touching down in the Indian Ocean. Earlier in August, American President Donald Trump signed an presidential directive to simplify space launches, relaxing rules for private space companies.