To compete with the increasingly powerful SpaceX of the United States, the three major European aerospace manufacturersFormalize the agreement, will integrate their respective space business units to establish a new joint venture. Financial TimesReports allegeAirbus, co-founded by France, Germany, Spain and the United Kingdom, and the "European space leader" formed by Italy's Leonardo SpA and France's Thales, will have the potential to become a strong competitor to SpaceX.
Integrating resources, Airbus holds 35% stake, becoming the largest shareholder
According to the finalized agreement, the yet-to-be-named joint venture will be headquartered in France and is expected to employ approximately 25000 people. Airbus will hold a 35% stake, while Leonardo and Thales will each hold 32.5%.
"This proposed new company marks a key milestone for the European space industry. It embodies our shared vision of building a stronger and more competitive European player in an increasingly dynamic global space market," the three companies stressed in a joint statement.
The statement also mentioned that by bringing together talent, resources, expertise and R&D capabilities, the new company aims to "generate growth, accelerate innovation and provide greater value to customers and stakeholders."
Goal: Strengthen European space sovereignty and counter Starlink
Executives hope that the new company will better meet Europe's pursuit of "sovereignty" in space, particularly in building its own system to rival SpaceX's Starlink low-Earth orbit satellite communications network. At the same time, strengthening Europe's presence in space is also seen as a key part of enhancing its overall security and defense capabilities.
It's worth noting that Thales and Airbus, long-time competitors in the satellite market, have now turned rivals into friends and collaborated, demonstrating that the European industry has recognized the urgency of consolidating resources. Leonardo, renowned for its expertise in space systems and services, strengthens the potential of the three companies to challenge SpaceX.
Independent operation, retaining existing bases, with the primary priority being improving satellite efficiency
The three companies said there are no plans to close existing bases, and each country will retain its existing space capabilities and facilities. The new company will operate as an independent entity, like a "startup" with extremely strong financial resources.
As for the new company's top priority, the report said it will be to find more efficient ways to develop and manufacture satellites to cope with cost and speed pressure from rivals such as SpaceX.
Operational in 2027? Subject to regulatory approval
Discussions about the merger date back to 2019. While the agreement has now been finalized, it still requires regulatory approval. The three companies anticipate that, if all goes well, the new joint venture could be operational as early as 2027.
On the other hand, its main competitor, SpaceX, is currently actively developing the next-generation Starship super-heavy launch vehicle, and is also slowly advancing its manned lunar landing plan, although the latter seems to have encountered some obstacles that may cause delays recently.
