Merger: EU satellite operators want to jointly counter Musk's SpaceX

The European space corporations Airbus, Leonardo and Thales are planning a far-reaching merger of their respective activities in the areas of satellite and space systems as well as space services. The goal of this consolidation is the creation of a new, powerful company that will strengthen Europe's strategic autonomy in space and counter global competition, particularly from SpaceX by Elon Musk.

The three corporations have signed a corresponding memorandum of understanding to pool their capacities, according to a statement on Thursday. According to the Memorandum of Understanding (MoU), the new company is to act as a partner for the development and implementation of Europe's national, sovereign space programs. The trio wants to create an integrated and resilient European player. This should have the critical mass to be competitive worldwide and grow in export markets.

The new company will combine a comprehensive portfolio of complementary technologies and end-to-end solutions, ranging from space infrastructure to services. Launch vehicles are explicitly excluded. This is intended to accelerate innovation and lead to greater efficiency through operational synergies in areas such as engineering, manufacturing, and project management.

Around 25,000 employees and billions in revenue

The merger affects key business areas of the parent companies: Airbus will contribute its Space Systems and Space Digital fields from the Defence and Space division. Leonardo is contributing its space division, including its stakes in Telespazio and Thales Alenia Space. Thales is mainly contributing its stakes in Thales Alenia Space, Telespazio, and Seso.

With an estimated 25,000 employees across Europe and an annual turnover of around 6.5 billion euros, the three corporations outline the new company as a globally competitive enterprise. Planned ownership structure: Airbus will hold a 35 percent stake, Leonardo and Thales will each receive 32.5 percent.

Hurdles and competition concerns

The heads of the companies involved emphasize that the merger aligns with the ambitions of European governments to consolidate their industrial and technological strengths in an environment of intensified competition. The EU is currently working on its own secure satellite communication network called IRIS2, which is intended to be an alternative to Musk's Starlink and ensure the member states' need for broadband internet from space. This is in line with the desired digital sovereignty.

The operational business of the new company is expected to start in 2027. However, other market players have concerns. In particular, the Bremen-based space company OHB, which is not involved in the merger talks, has expressed significant reservations. It fears that the merger would heavily consolidate control over the satellite manufacturing industry and significantly restrict competition. The EU Commission will have to examine this aspect as part of merger control.

(mki)