Give Europe some space! 3 companies join forces to reach for the stars

Summary

Airbus, Leonardo and Thales have signed a Memorandum of Understanding to merge their space activities into a single company intended to bolster Europe’s strategic autonomy in space. Airbus would hold 35% of the new firm, while Leonardo and Thales would each hold 32.5%. Contributions include Airbus’s Space Systems and Space Digital units, Leonardo’s Space Division, and Thales’ shares in Thales Alenia Space, Telespazio and Thales SESO.

The combined group would employ about 25,000 people across Europe and start with an annual turnover of around €6.5bn (based on 2024 figures). If regulatory and government clearances are secured, the new entity aims to be operational by 2027 and offer end-to-end space infrastructure and services — excluding launchers.

Key Points

Airbus, Leonardo and Thales have signed an MoU to combine their space businesses into one company to strengthen Europe’s space autonomy.
Ownership split: Airbus 35%, Leonardo 32.5%, Thales 32.5%; combined workforce ~25,000 and initial turnover ~€6.5bn.
Contributions cover satellite manufacturing, space digital services and systems providers (excludes launch vehicles).
The new company is expected to be operational by 2027, subject to regulatory and governmental approvals.
Primary aim is to provide a trusted partner for national sovereign space programmes and to consolidate complementary technologies and services.
Major challenges include fierce market competition from low-cost LEO constellations (eg. SpaceX/Starlink) and the fast shift from complex GEO platforms to mass-produced LEO satellites.

Context and relevance

This move is a clear industry response to two big pressures: geopolitical concerns about reliance on non‑European suppliers and rapid commercial disruption from inexpensive, high-volume LEO constellations. Consolidation could help Europe compete at scale and protect sovereign capabilities (defence, comms, EO), but it also raises regulatory scrutiny and integration risks.

For stakeholders — defence procurement, national space agencies, systems integrators and investors in European aerospace — the deal matters because it reshapes supplier landscapes, supply chains and bargaining power for the next decade of space programmes.

Why should I read this?

Because if you care about who builds Europe’s satellites, who answers governments when they want sovereign systems, or where big defence and civil satellite contracts will go, this is the plot twist. Three giants teaming up could either fix Europe’s scale problem or create a slow, regulation‑heavy behemoth that still struggles against cheap LEO players. Short version: it affects contracts, jobs and Europe’s tech independence — worth five minutes of your time.

Source

Source: https://go.theregister.com/feed/www.theregister.com/2025/10/23/euro_trio_space/