🔗 Share this article Major European Aerospace Companies Join Forces to Create Rival to Musk's SpaceX Three prominent EU-based space technology firms—the Airbus Group, Leonardo, and Thales Group—have finalized a major agreement to merge their space businesses. This collaboration seeks to establish a unified pan-European technology company capable of rivaling with the SpaceX. Economic Details and Stake Breakdown The resulting company is expected to achieve annual sales of approximately €6.5bn (£5.6bn). As per the arrangement, Airbus will hold a thirty-five percent stake in the new business. At the same time, both Leonardo and Thales will respectively own thirty-two point five percent ownership. Scope and Objectives of the New Company The unnamed alliance represents one of the largest consolidations of its kind across Europe. It will bring together diverse capabilities in satellite manufacturing, space systems, parts, and services from leading aerospace and defence producers. The CEO of Airbus, Roberto Cingolani, and Thales's CEO collectively declared, “The new company represents a crucial milestone for Europe's space industry.” The executives continued, “By combining our talent, resources, knowledge, and R&D capabilities, we aim to generate expansion, speed up progress, and deliver greater value to our customers and stakeholders.” Business Information and Timeline The new company will be based in Toulouse and employ approximately 25,000 employees. It is scheduled to become fully functional in 2027, pending necessary approvals. As per the companies, it is expected to generate “mid-triple digit” euros in millions in synergies on annual profit each year, starting following a five-year timeframe. Background and Reasons Reports indicate that discussions between Airbus, Leonardo, and Thales started last year. The move aims to replicate the model of MBDA, which is owned by Airbus, Leonardo, and BAE Systems. Although significant job cuts in their space units in the past few years, the companies assured that there would be zero immediate facility shutdowns or layoffs. Nonetheless, they noted that labor representatives would be consulted during the project. Past Struggles in Space Operations The firms have encountered difficulties in their space operations recently. The previous year, Airbus recorded 1.3 billion euros in charges from unprofitable space contracts and revealed 2,000 job cuts in its defense and space sector. In a similar vein, Thales Alenia Space, a partnership of Thales and Leonardo, eliminated over 1,000 jobs last year. Global Market Environment At the same time, Elon Musk's SpaceX, founded in 2002, has grown to emerge as one of the biggest private companies worldwide, with a valuation of {$400 billion dollars. SpaceX dominates both the space launch and satellite-based internet markets. Its main competitors include other US companies such as United Launch Alliance, a joint venture between Boeing and Lockheed Martin, and Blue Origin, created by technology tycoon Jeff Bezos. Earlier this month, SpaceX successfully flew its eleventh Starship rocket from Texas, landing in the Indian Ocean. Earlier in August, US President Donald Trump signed an presidential directive to streamline space launches, relaxing regulations for commercial space operators.