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A trio of leading European aerospace companies—Airbus, Leonardo S.p.A., and Thales Group—have finalized a major deal to merge their space-related operations. This collaboration aims to establish a unified pan-European technology enterprise capable of competing with the SpaceX venture.

Economic Details and Ownership Breakdown

The newly formed entity is expected to achieve annual sales of approximately 6.5 billion euros (£5.6bn). Under the terms, the French aerospace giant Airbus will hold a thirty-five percent stake in the venture. At the same time, both Italy's Leonardo and Thales will each own 32.5% shares.

Scale and Objectives of the Joint Enterprise

This unnamed alliance represents one of the biggest consolidations of its type across the European continent. It will bring together diverse capabilities in building satellites, space systems, components, and services from leading aerospace and defence manufacturers.

The CEO of Airbus, Leonardo's chief executive, and Patrice Caine collectively declared, “The joint company marks a pivotal step for the European space industry.” They added, “By pooling our expertise, assets, knowledge, and research and development strengths, we aim to drive growth, speed up progress, and deliver enhanced benefits to our clients and partners.”

Business Details and Timeline

This new company will be based in Toulouse and employ approximately 25,000 employees. It is scheduled to become operational in 2027, pending regulatory approvals. As per the partners, it is expected to yield “mid-triple digit” millions of euros in cost savings on operating income each year, starting following a five-year period.

Context and Reasons

Sources indicate that discussions among Airbus, Leonardo, and Thales began last year. The initiative aims to mirror the structure of the European missile manufacturer MBDA, which is jointly held by Airbus, Leonardo, and BAE Systems.

Although significant workforce reductions in their space-related units in recent years, the companies assured that there would be zero immediate facility shutdowns or job losses. Nonetheless, they noted that labor representatives would be consulted throughout the process.

Past Struggles in Space-Related Operations

The companies have faced setbacks in their space ventures recently. The previous year, Airbus incurred 1.3 billion euros in charges from underperforming space contracts and revealed two thousand job cuts in its defence and space sector. In a similar vein, Thales Alenia Space, a collaboration between Thales and Leonardo, eliminated over one thousand jobs the previous year.

Global Competitive Landscape

Meanwhile, Elon Musk's SpaceX company, established in 2002, has expanded to become one of the biggest startups worldwide, with a market value of {$$400bn. SpaceX dominates both the rocket launch and satellite internet markets. Its primary competitors are other US companies such as United Launch Alliance, a joint venture between Boeing and Lockheed Martin, and Blue Origin, created by tech billionaire Jeff Bezos.

Earlier this month, the company successfully flew its eleventh Starship from Texas, USA, landing in the Indian Ocean. Earlier in August, American President Donald Trump approved an presidential directive to streamline space launches, easing regulations for private space companies.