Europe's satellite firms set out merger plan to counter Elon Musk's SpaceX
The unnamed new company could be operational as soon as 2027
Airbus, Leonardo and Thales finally announced plans to merge their space businesses on Thursday as part of efforts to compete against US billionaire Elon Musk’s SpaceX, with EU competition authorities now tasked with assessing the deal.
After months of negotiations, the three aerospace companies have agreed a memorandum of understanding to create a new company – as yet unnamed – which will have the “critical mass to compete globally” from 2027, according to a joint press release.
The statement sets out an intention to strengthen Europe’s strategic autonomy in satellite telecommunications – an area where the bloc lags behind SpaceX but has an ambitious project, IRIS², targeted at offering a local communications alternative to Starlink.
The three CEOs pitch the merger as in line “with the ambitions of European governments to strengthen their industrial and technological assets” at a time of increased competition.
However, significant hurdles remain. Germany’s OHB, another major producer of space technology based in Bremen and not part of the merger talks, has been clear that it has concerns over the deal as it will consolidate control of the satellite manufacturing industry.
Should the EU’s competition authorities approve the deal, the new company would have annual turnover of €6.5 billion and employ 25,000 people across the continent, the statement says.
The shares of the new company will be distributed as follows – 35% for Airbus and 32.5% each for Leonardo and Thales.
(jp)
