Major EU Space Firms Join Forces to Create Rival to Elon Musk's SpaceX
Three leading EU-based aerospace companies—the Airbus Group, Leonardo, and Thales Group—have finalized a major deal to combine their space operations. This collaboration aims to establish a unified pan-European tech company capable of rivaling with Elon Musk's SpaceX.
Financial Details and Stake Breakdown
This newly formed company is projected to achieve yearly sales of approximately 6.5 billion euros (5.6 billion pounds). Under the arrangement, Airbus will hold a 35% stake in the new business. At the same time, both Italy's Leonardo and Thales will each retain thirty-two point five percent ownership.
Scope and Goals of the New Company
The yet-to-be-named merger represents one of the biggest partnerships of its kind across the European continent. It will bring together diverse expertise in satellite manufacturing, space systems, parts, and support services from leading defense and aerospace producers.
Guillaume Faury, Leonardo's chief executive, and Thales's CEO collectively stated, “This joint company marks a crucial milestone for the European space sector.” The executives continued, “Through pooling our talent, resources, expertise, and research and development strengths, we aim to drive growth, accelerate innovation, and provide enhanced benefits to our customers and partners.”
Operational Details and Schedule
The new firm will be headquartered in Toulouse, France and have a workforce of about 25,000 people. It is planned to become fully functional in the year 2027, pending necessary approvals. As per the companies, it is projected to generate “hundreds of” millions of euros in cost savings on annual profit each year, beginning after a five-year period.
Context and Motivation
Reports indicate that talks among Airbus, Leonardo, and Thales started last year. The move aims to replicate the structure of the European missile manufacturer MBDA, which is jointly held by Airbus, Leonardo, and BAE Systems.
Despite substantial workforce reductions in their space divisions in recent years, the firms stated that there would be no immediate facility shutdowns or job losses. However, they noted that unions would be engaged throughout the process.
Recent Struggles in Space-Related Operations
The companies have encountered difficulties in their space ventures in recent times. The previous year, Airbus incurred €1.3bn in charges from unprofitable space contracts and announced two thousand job cuts in its defence and space sector. In a similar vein, the Thales Alenia Space joint venture, which is a partnership between Thales and Leonardo, cut over one thousand jobs the previous year.
Global Market Environment
Meanwhile, the SpaceX, founded in 2002, has grown to become one of the largest startups globally, with a valuation of {$400 billion dollars. It leads both the rocket launch and satellite-based internet sectors. Its main rivals include additional US firms such as United Launch Alliance, a partnership of Boeing and Lockheed Martin, and Blue Origin, founded by tech tycoon Jeff Bezos.
Just recently, the company launched its 11th Starship from Texas, USA, touching down in the Indian Ocean. In August, US President Donald Trump signed an presidential directive to simplify space launches, relaxing regulations for commercial space companies.