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A trio of prominent EU-based space technology companies—Airbus, Leonardo S.p.A., and Thales—have finalized a strategic deal to merge their space businesses. The collaboration seeks to establish a unified European tech enterprise poised of competing with Elon Musk's SpaceX.

Economic Details and Ownership Structure

This newly formed company is projected to generate annual sales of approximately €6.5bn (£5.6bn). Under the arrangement, the French aerospace giant Airbus will control a 35% share in the new business. At the same time, both Italy's Leonardo and Thales will each retain 32.5% shares.

Scale and Goals of the Joint Company

The yet-to-be-named merger represents one of the biggest partnerships of its type across the European continent. It will bring together diverse expertise in building satellites, space systems, components, and support services from leading aerospace and defence manufacturers.

Guillaume Faury, Roberto Cingolani, and Patrice Caine collectively declared, “This new venture marks a pivotal milestone for the European space sector.” The executives continued, “Through combining our talent, resources, expertise, and research and development capabilities, we intend to drive growth, speed up innovation, and provide enhanced benefits to our customers and partners.”

Business Details and Timeline

The new company will be based in Toulouse, France and employ about twenty-five thousand people. It is scheduled to become operational in the year 2027, pending necessary clearances. As per the companies, it is projected to yield “mid-triple digit” millions of euros in synergies on annual profit per year, starting following a five-year period.

Background and Reasons

Sources indicate that discussions between Airbus, Leonardo, and Thales began the previous year. The move aims to mirror the model of the European missile manufacturer MBDA, which is jointly held by Airbus, Leonardo, and BAE Systems.

Although significant workforce reductions in their space-related divisions in recent years, the firms stated that there would be no immediate facility shutdowns or job losses. Nonetheless, they confirmed that unions would be engaged throughout the project.

Past Struggles in Space Business

These companies have faced difficulties in their space ventures recently. Last year, Airbus recorded €1.3bn in losses from underperforming space contracts and announced two thousand redundancies in its defense and space division. In a similar vein, Thales Alenia Space, which is a partnership of Thales and Leonardo, cut over 1,000 jobs last year.

Global Market Landscape

Meanwhile, the SpaceX company, established in 2002, has expanded to emerge as one of the biggest startups globally, with a market value of {$400 billion dollars. SpaceX dominates both the space launch and satellite-based internet sectors. Its main rivals are other US firms such as United Launch Alliance, a joint venture of Boeing and Lockheed Martin, and Blue Origin, created by technology tycoon Jeff Bezos.

Just this month, the company successfully flew its eleventh Starship from Texas, USA, touching down in the Indian Ocean. In August, American President Donald Trump signed an presidential directive to streamline rocket launches, relaxing rules for commercial space companies.