🔗 Share this article Major EU Space Companies Join Forces to Establish Rival to Musk's SpaceX A trio of prominent EU-based aerospace firms—Airbus, Leonardo, and Thales—have finalized a major deal to combine their space operations. This collaboration seeks to establish a unified European tech enterprise capable of rivaling with the SpaceX. Economic Details and Ownership Breakdown The resulting entity is projected to achieve yearly revenue of approximately 6.5 billion euros (£5.6bn). Under the arrangement, the French aerospace giant Airbus will hold a 35% stake in the new business. At the same time, both Leonardo and Thales will each own thirty-two point five percent ownership. Scale and Objectives of the New Enterprise This unnamed alliance constitutes one of the largest consolidations of its type across Europe. It will unite diverse capabilities in building satellites, spacecraft systems, components, and support services from leading defense and aerospace manufacturers. The CEO of Airbus, Roberto Cingolani, and Patrice Caine jointly declared, “The joint company marks a pivotal milestone for Europe's space sector.” They continued, “By pooling our expertise, assets, expertise, and R&D strengths, we aim to drive growth, accelerate progress, and provide enhanced value to our customers and partners.” Operational Details and Timeline This new firm will be headquartered in Toulouse, France and have a workforce of approximately twenty-five thousand people. The entity is scheduled to become fully functional in 2027, pending necessary clearances. As per the partners, it is projected to generate “mid-triple digit” euros in millions in cost savings on operating income per year, starting following a five-year timeframe. Context and Motivation Reports indicate that talks between Airbus, Leonardo, and Thales began last year. The initiative aims to replicate the structure of the European missile manufacturer MBDA, which is owned by Airbus, Leonardo, and BAE Systems. Although substantial job cuts in their space divisions in the past few years, the companies assured that there would be zero immediate site closures or layoffs. Nonetheless, they noted that labor representatives would be engaged during the process. Past Challenges in Space Business These firms have encountered difficulties in their space operations recently. Last year, Airbus incurred €1.3bn in losses from unprofitable space projects and announced two thousand redundancies in its defense and space sector. Similarly, the Thales Alenia Space joint venture, a collaboration between Thales and Leonardo, eliminated over one thousand positions last year. Global Market Environment Meanwhile, the SpaceX, established in 2002, has expanded to emerge as one of the biggest private companies globally, with a valuation of {$400 billion dollars. It leads 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, founded by technology billionaire Jeff Bezos. Earlier recently, SpaceX successfully flew its 11th Starship from Texas, USA, touching down in the Indian Ocean. Earlier in August, US President Donald Trump approved an presidential directive to simplify rocket launches, relaxing regulations for private space operators.