European aerospace and defence majors Airbus, Leonardo, and Thales have announced plans to merge their respective space operations into a new entity.
The initiative, formalised through a Memorandum of Understanding (MoU), seeks to bolster Europe’s strategic autonomy within the space sector.
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In addition, the new company is expected to serve as a reliable partner for the development and execution of national sovereign space programmes.
Airbus will contribute its Space Systems and Space Digital businesses, and Leonardo will add its Space Division, including shares in Telespazio and Thales Alenia Space.
Thales will also contribute shares in Thales Alenia Space, Telespazio, and Thales SESO.
The ownership shares have been distributed with Airbus, Leonardo, and Thales owning 35%, 32.5%, and 32.5% stakes, respectively in the new space entity.
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By GlobalDataThe new company will have an employment base of approximately 25,000 individuals across Europe and an anticipated annual revenue of approximately €6.5bn by the end of 2024, following pro forma calculations.
Airbus CEO Guillaume Faury, Leonardo CEO Roberto Cingolani, and Thales CEO Patrice Caine, in a joint statement, said: “This proposed 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 new entity will gather, develop, and enhance a broad range of complementary technologies and solutions, spanning from space infrastructure to services, excluding space launchers.
It will pool investments in future space products and services, utilising the combined expertise and resources of all three companies.
According to Airbus, the merger could result in mid-triple-digit million-euro annual synergies on operating income within five years of completion.
“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. This 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,” the joint statement reads.
The upcoming stage of this initiative involves informing and consulting the employee representatives of Airbus, Leonardo, and Thales.
This process will comply with the laws of the respective countries and the collective agreements in force at each parent company.
The conclusion of the transaction is subject to regulatory clearances and other customary conditions, with the new company expected to commence operations in 2027.
