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Three prominent European space technology companies—Airbus, Leonardo S.p.A., and Thales—have sealed a major deal to combine their space-related businesses. The partnership aims to establish a unified European technology enterprise capable of competing with the SpaceX venture.

Financial Aspects and Ownership Breakdown

The resulting entity is projected to generate yearly sales of around 6.5 billion euros (5.6 billion pounds). Under the terms, the French aerospace giant Airbus will control a 35% stake in the venture. Meanwhile, both Leonardo and Thales will each retain 32.5% ownership.

Scope and Goals of the New Enterprise

This yet-to-be-named alliance represents one of the biggest consolidations of its kind across Europe. It will bring together various capabilities in building satellites, space systems, components, and services from top defense and aerospace manufacturers.

Guillaume Faury, Leonardo's chief executive, and Thales's CEO jointly stated, “The new venture represents a crucial step for the European space industry.” They added, “Through pooling our expertise, resources, expertise, and research and development capabilities, we intend to generate expansion, accelerate progress, and deliver enhanced benefits to our clients and partners.”

Business Information and Timeline

The combined company will be based in Toulouse, France and have a workforce of approximately twenty-five thousand employees. It is scheduled to be fully functional in the year 2027, pending regulatory approvals. As per the partners, it is expected to generate “mid-triple digit” millions of euros in synergies on annual profit per year, starting following a five-year timeframe.

Background and Reasons

Sources indicate that talks among Airbus, Leonardo, and Thales started last year. The initiative seeks to mirror the structure of MBDA, which is owned by Airbus, Leonardo, and BAE Systems.

Although substantial workforce reductions in their space divisions in recent years, the firms assured that there would be no immediate facility shutdowns or layoffs. Nonetheless, they noted that unions would be engaged during the project.

Recent Struggles in Space-Related Business

The firms have encountered setbacks in their space operations in recent times. The previous year, Airbus incurred €1.3bn in charges from unprofitable space contracts and revealed 2,000 job cuts in its defence and space division. In a similar vein, the Thales Alenia Space joint venture, a collaboration between Thales and Leonardo, cut over one thousand jobs last year.

Worldwide Competitive Landscape

At the same time, the SpaceX company, founded in 2002, has grown to become one of the largest private companies globally, with a market value of {$$400bn. It leads both the rocket launch and satellite-based internet markets. Its main competitors are additional US firms such as United Launch Alliance, a joint venture between Boeing and Lockheed Martin, and Blue Origin, created by tech tycoon Jeff Bezos.

Just this month, SpaceX successfully flew its eleventh Starship rocket from Texas, landing in the Indian Ocean. Earlier in August, US President Donald Trump signed an presidential directive to streamline rocket launches, easing regulations for private space operators.