Europe Firms Agree on Satellite Merger to Counter Starlink

European aerospace groups have unveiled an initial deal to pool their loss-making satellite manufacturing activities, combining forces after months of negotiations to counter the runaway growth of rivals led by Elon Musk’s Starlink, Giulia Segreti and Tim Hepher reported for Reuters.

Airbus will hold 35%, while Thales and Leonardo will each hold 32.5%. (Photo: Leonardo) 

The keenly awaited deal among Airbus, Thales, and Leonardo aims to forge a new venture starting in 2027, subject to approval by European regulators who have resisted such moves in the past.

The unnamed new entity will employ 25,000 people across Europe with annual revenues of €6.5 billion ($7.58 billion), based on 2024 figures, the companies said in a statement.

Airbus will hold 35%, while Thales and Leonardo will each hold 32.5%, the statement said, adding that the company will operate under joint control “with a balanced governance structure.”

The space combination is expected to generate “mid-triple-digit” millions of euros in annual operating income synergies within five years, the companies added.

Code-named “Project Bromo,” talks between the three aerospace groups began last year in an effort to replicate the cooperation model of European missile maker MBDA, which is jointly owned by Airbus, Leonardo, and BAE Systems.