European Aerospace Titans Unite in New Satellite Venture

In a strategic move to counter burgeoning competition from rapidly growing rivals like Elon Musk's Starlink, European aerospace giants Airbus, Thales, and Leonardo have unveiled an initial agreement to merge their underperforming satellite manufacturing divisions.

This newly formed entity, which still requires regulatory approval, is set to begin operations in 2027 and employ 25,000 people with anticipated revenues of 6.5 billion euros, according to a joint statement by the companies. Governance will be evenly split, with Airbus holding a 35% stake and Thales and Leonardo each holding 32.5%.

The joint venture, code-named 'Project Bromo,' is projected to yield annual operating income synergies in the hundreds of millions of euros after five years. The merger aims to protect Europe's strategic space interests, combining several space and digital sectors from Thales Alenia Space, Telespazio, and Airbus.