Airbus SE (EADSY), Leonardo SpA (FINMY), and Thales SA (THLLY) have agreed to merge their space units into a single company based in Toulouse, France. The new group will have about 25,000 workers and an annual revenue of roughly €6.5 billion. Airbus will hold a 35% stake, while Leonardo and Thales will each hold 32.5%. The companies said the goal is to create a stronger European space business that can compete more effectively with SpaceX.
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The deal is meant to help Europe catch up in satellite production and lower costs through shared research and resources. It is modeled on MBDA, a European missile maker jointly owned by Airbus, BAE Systems, and Leonardo. The companies said the merger could deliver “mid-triple-digit million” savings within five years through reduced duplication and more efficient procurement.
Meanwhile, EADSY shares declined 0.35% on Tuesday, closing at $59.67.
Adapting to a Changing Market
For years, Europe has led in making large satellites used for broadcasting and communications from high orbit. However, that market has slowed, while SpaceX’s Starlink network has changed demand by offering cheaper and faster internet through thousands of small satellites. As a result, Airbus and Thales Alenia Space, a joint venture between Thales and Leonardo, have faced delays, restructuring, and job losses.
By combining their space operations, the three companies hope to speed up innovation and production. Each country involved will keep its existing facilities, but roles could change over time as the group looks for efficiency. The companies said this structure will help Europe maintain control of its space assets, which have become more critical for defense and security.
Next Steps and Reactions
The deal still needs regulatory approval and is expected to close by 2027. However, some competitors have voiced concern. Germany’s OHB SE (EXTRA:OHB), Europe’s third-largest satellite maker, said the merger could reduce competition and limit future partnerships. The European launch provider Arianespace is not part of the deal, though Airbus said there could be discussions in the future.
If approved, the new company would become one of the largest space groups in Europe, spanning satellite manufacturing, space systems, and related services. The companies believe this will make them more competitive in a global market that has been transformed by faster, private-led progression.
Overall, the plan reflects Europe’s effort to protect its place in the growing commercial space market while trying to match the pace and scale of rivals like SpaceX.
By using TipRanks’ Comparison Tool, we’ve lined up all the publicly traded companies mentioned in the piece to gain a broader perspective on each stock and the satellite sector as a whole.
