Europe's Satellite Titans Unite: Staving Off SpaceX Dominance

In a bid to counter the advancing dominance of Elon Musk's SpaceX, Italy's Leonardo, France's Thales, and Airbus are negotiating a potentially transformative deal to create a new European satellite manufacturing entity. Sources close to the matter reveal that the companies are on the cusp of announcing the venture, barring any last-minute hurdles.

The proposed union aims to consolidate the satellite activities of the companies into a singular entity, addressing financial losses and reshaping their competitive stance in the satellite market. Despite more than a year of challenging negotiations plagued by power balance and regulatory concerns, the firms remain hopeful of progressing with the agreement.

While some details have been agreed upon, including potential stakes and governance roles, hurdles remain. National interests from Italy and France pose challenges, particularly as Prime Minister Giorgia Meloni seeks to safeguard Italian stakes and Thales CEO Patrice Caine steers the venture. The partnership echoes past European defense collaborations like the MBDA venture, yet awaits EU regulatory approval and industry scrutiny.