The three industry giants signed a Memorandum of Understanding (MoU) this week, outlining plans to merge their space divisions into a new entity that will bring together cutting-edge capabilities in satellite systems, telecommunications, Earth observation, exploration, and defence-related space programmes.
A New Force in Space
The yet-to-be-named company will be headquartered in Europe and employ around 25,000 people across several countries. With a combined annual turnover of €6.5 billion (pro forma, end of 2024) and an order backlog covering more than three years of projected sales, the entity is set to become one of the world’s leading space players — second only to the likes of the United States’ aerospace titans.
By consolidating their assets, the companies aim to accelerate innovation, boost competitiveness, and unify Europe’s fragmented space landscape. The move comes at a time when global competition in space technology is intensifying, driven by the rapid growth of private players such as SpaceX and Blue Origin, and renewed government investment in orbital infrastructure and planetary exploration.
Pooling Expertise Across Europe
Each company brings decades of heritage and specialized expertise.
- Airbus contributes its Space Systems and Space Digital businesses from Airbus Defence and Space.
- Leonardo adds its Space Division, including holdings in Telespazio and Thales Alenia Space.
- Thales contributes its shares in Thales Alenia Space, Telespazio, and Thales SESO.
Together, these assets create a complete ecosystem spanning the full value chain — from spacecraft design and manufacturing to data-driven services and satellite operations.
Ownership of the new company will be split among the partners, with Airbus holding 35%, and Leonardo and Thales each holding 32.5%. The entity will operate under joint control, guided by a balanced governance structure.
Driving Europe’s Strategic Autonomy
Beyond commercial ambitions, the project has strong geopolitical significance. Europe has long sought greater independence in space — a domain increasingly linked to national security, digital sovereignty, and global competitiveness.
“This proposed new company marks a pivotal milestone for Europe’s space industry,” the CEOs of the three firms — Guillaume Faury (Airbus), Roberto Cingolani (Leonardo), and Patrice Caine (Thales) — said in a joint statement.
“It embodies our shared vision to build a stronger and more competitive European presence in an increasingly dynamic global space market. By pooling our talent, resources, expertise, and R&D capabilities, we aim to generate growth, accelerate innovation and deliver greater value to our customers and stakeholders.”
The partnership, they added, aligns closely with the ambitions of European governments to consolidate the continent’s industrial and technological assets and ensure autonomy in space-based infrastructure — from communications and navigation to climate monitoring and defence applications.
A Platform for Innovation and Growth
The merger is expected to unlock significant operational and financial synergies, estimated at mid triple-digit million euros in annual operating income within five years of completion. It will also enable deeper investments in research and development, helping Europe remain at the forefront of innovation in satellite manufacturing, in-orbit servicing, and space-based data analytics.
Analysts say the new entity could serve as a counterweight to U.S. and Chinese space conglomerates, giving Europe a consolidated platform to compete globally while providing greater stability for small and medium-sized suppliers across the continent.
Looking Ahead on Space Travel in Europe
Employee representatives across the three companies will be consulted in accordance with national laws and collective agreements. Pending regulatory approvals, the new company is expected to become operational in 2027.
If successful, the merger could mark one of the most important restructurings in European aerospace history — transforming three historic rivals into partners united by a common goal: to ensure that Europe remains a significant force in the next frontier of exploration, innovation, and security.
