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Three prominent EU-based space technology firms—Airbus, Leonardo, and Thales—have now finalized a major agreement to combine their space operations. The partnership seeks to form a unified European tech company poised of rivaling with Elon Musk's SpaceX.

Financial Details and Stake Breakdown

This newly formed entity is expected to generate annual revenue of approximately 6.5 billion euros (£5.6bn). As per the arrangement, Airbus will hold a thirty-five percent share in the venture. Meanwhile, both Leonardo and France's Thales will respectively own 32.5% shares.

Scale and Goals of the New Enterprise

The unnamed merger constitutes one of the biggest consolidations of its kind across Europe. It will bring together diverse capabilities in satellite manufacturing, space systems, parts, and support services from leading defense and aerospace producers.

Guillaume Faury, Roberto Cingolani, and Thales's CEO jointly stated, “The new company marks a pivotal milestone for the European space industry.” They added, “Through pooling our expertise, assets, expertise, and research and development capabilities, we aim to drive expansion, speed up progress, and deliver enhanced value to our customers and stakeholders.”

Operational Details and Timeline

This combined company will be based in Toulouse and employ approximately 25,000 people. The entity is scheduled to become fully functional in the year 2027, pending regulatory approvals. According to the partners, it is projected to yield “mid-triple digit” euros in millions in cost savings on annual profit each year, starting after a five-year timeframe.

Background and Reasons

Sources suggest that talks between Airbus, Leonardo, and Thales began last year. The initiative seeks to mirror the model of the European missile manufacturer MBDA, which is owned by Airbus, Leonardo, and BAE Systems.

Although substantial job cuts in their space-related divisions in recent years, the companies stated that there would be zero immediate facility shutdowns or job losses. However, they confirmed that labor representatives would be consulted during the project.

Past Struggles in Space-Related Operations

These companies have faced difficulties in their space ventures recently. The previous year, Airbus incurred 1.3 billion euros in losses from unprofitable space contracts and announced 2,000 job cuts in its defence and space sector. In a similar vein, the Thales Alenia Space joint venture, a partnership between Thales and Leonardo, eliminated more than 1,000 positions the previous year.

Worldwide Competitive Environment

At the same time, the SpaceX company, founded in 2002, has grown to emerge as one of the biggest private companies worldwide, with a valuation of {$$400bn. SpaceX dominates both the rocket launch and satellite-based internet markets. Its main rivals include other US companies such as United Launch Alliance, a joint venture of Boeing and Lockheed Martin, and Blue Origin, created by technology tycoon Jeff Bezos.

Earlier this month, the company successfully flew its 11th Starship from Texas, touching down in the Indian Ocean. In August, US President Donald Trump approved an presidential directive to simplify rocket launches, relaxing regulations for private space operators.