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Three leading EU-based space technology companies—Airbus, Leonardo S.p.A., and Thales Group—have finalized a strategic deal to combine their space businesses. This collaboration aims to establish a unified European tech company capable of competing with Elon Musk's SpaceX venture.

Economic Aspects and Ownership Breakdown

The newly formed entity is expected to achieve yearly sales of around €6.5bn (£5.6bn). As per the arrangement, the French aerospace giant Airbus will control a 35% share in the venture. Meanwhile, both Leonardo and Thales will each own thirty-two point five percent shares.

Scope and Objectives of the New Company

This yet-to-be-named alliance constitutes one of the largest consolidations of its type across the European continent. It will unite diverse capabilities in satellite manufacturing, spacecraft systems, parts, and support services from top aerospace and defence producers.

The CEO of Airbus, Roberto Cingolani, and Thales's CEO jointly declared, “The new venture marks a crucial step for Europe's space industry.” They continued, “By combining our expertise, assets, expertise, and R&D capabilities, we intend to drive expansion, speed up innovation, and deliver enhanced benefits to our customers and partners.”

Business Information and Timeline

This combined company will be headquartered in Toulouse and have a workforce of about 25,000 employees. The entity is planned to become fully functional in 2027, pending regulatory approvals. According to the partners, it is expected to yield “hundreds of” euros in millions in synergies on operating income each year, starting after a five-year timeframe.

Context and Reasons

Sources suggest that talks among Airbus, Leonardo, and Thales began the previous year. The move seeks to mirror the structure of MBDA, which is owned by Airbus, Leonardo, and BAE Systems.

Despite substantial workforce reductions in their space-related divisions in recent years, the firms assured that there would be zero immediate facility shutdowns or job losses. However, they confirmed that labor representatives would be consulted throughout the process.

Recent Struggles in Space-Related Operations

These companies have faced setbacks in their space ventures in recent times. The previous year, Airbus recorded €1.3bn in losses from unprofitable space projects and revealed two thousand redundancies in its defence and space division. Similarly, Thales Alenia Space, a partnership between Thales and Leonardo, eliminated more than one thousand jobs last year.

Global Competitive Landscape

At the same time, Elon Musk's SpaceX, established in 2002, has expanded to emerge as one of the largest private companies worldwide, with a market value of {$$400bn. It leads both the space launch and satellite-based internet markets. Its main competitors include other US firms such as United Launch Alliance, a joint venture of Boeing and Lockheed Martin, and Blue Origin, founded by tech billionaire Jeff Bezos.

Earlier this month, the company successfully flew its eleventh Starship from Texas, USA, landing in the Indian Ocean. Earlier in August, American President Donald Trump signed an executive order to streamline space launches, easing rules for private space operators.