Three major European aerospace companies, Airbus, Thales, and Leonardo, have reached an agreement to merge their satellite activities into a single new company. The merger strengthens Europe’s position in the commercial space sector. It will also compete with Elon Musk’s Starlink.
According to the companies involved, the new organization, set to launch in 2027, will generate annual revenue of around $7.58 billion and employ approximately 25,000 people across Europe.
Airbus will hold 35%, while Thales and Leonardo will each hold 32.5%, the statement said, adding it would operate under joint control "with a balanced governance structure".
The space combination is expected to generate "mid-triple digit" millions of euros of synergies on operating income per year, starting after five years, the companies said.
Code-named "Project Bromo," talks between the three aerospace groups started last year in a bid to copy the co-operation model of European missile maker MBDA, which is owned by Airbus, Leonardo and BAE Systems.
Europe's top satellite makers have long competed to build complex spacecraft in geostationary orbit but have been hit by the arrival of cheap tiny satellites in low Earth orbit.
The CEOs of the three companies said in a joint declaration that the merger would help governments ensure "Europe’s autonomy across the strategic space domain".
The deal will combine manufacturing and services activities of Thales Alenia Space and Telespazio - two joint ventures between Leonardo and Thales - as well as various Airbus space and digital businesses, the remaining space activities owned by Leonardo and Thales SESO.
The companies, who have already cut a combined total of some 3,000 jobs in space, made no mention of any further job cuts, but said unions would be consulted on the project.
Source: Reuters
Bd-pratidin English/ ANI
