Airbus, Leonardo and Thales have signed a Memorandum of Understanding to create a leading European player in space. This new giant organisation was much expected by the industry and brings together Europe’s three largest space-related businesses.
A statement from the trio said: “[This] new European space player aims to unite and enhance capabilities by combining the three respective activities in satellite and space systems manufacturing and space services. [It is] a major milestone in strengthening the European space ecosystem, supporting a greater innovation capability, strategic autonomy and competitiveness, to ensure Europe enhances its role as a key player in the space global market.”
The new company could be operational in 2027, subject to regulatory approvals and satisfaction of other closing conditions. The project is expected to generate significant synergies, foster innovation, and deliver added value to customers, shareholders and employees.
This company will pool, build and develop a portfolio of complementary technologies and end-to-end solutions, from space infrastructure to services (excluding space launchers). It aims to accelerate innovation in this strategic market, in order to create a “unified, integrated and resilient European space player with the critical mass to compete globally and grow on the export markets”.
“This new player will be able to foster innovation, combine and strengthen investments in future space products and services, building on the complementary assets and world-class expertise of all three companies. The combination is expected to generate mid triple digit million euro of total annual synergies on operating income five years after closing. Associated costs to generate those synergies are expected to be in line with industry benchmark,” the statement added.
Airbus will place its Space Systems and Space Digital operations into the new company. Leonardo will do the same while Thales will contribute with its shares in Thales Alenia Space and include Telespazio and Thales SESO (its optical division)..
The combined entity will employ around 25,000 people across Europe. With an annual turnover of about €6.5 billion (end of 2024, pro-forma) and an order backlog representing more than three years of projected sales, this new company will form a robust, innovative and competitive entity worldwide.
Ownership of the new company will be shared among the parent companies, with Airbus, Leonardo and Thales owning respectively 35 per cent, 32.5 per cent and 32.5 per cent stakes. “It will operate under joint control, with a balanced governance structure among shareholders,” said the proposers.
Guillaume Faury, CEO of Airbus, Roberto Cingolani, CEO/GM of Leonardo and Patrice Caine, Chairman & CEO of Thales, declared: “This proposed new company marks a pivotal milestone for Europe’s space industry. 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. This partnership aligns with the ambitions of European governments to strengthen their industrial and technological assets, ensuring Europe’s autonomy across the strategic space domain and its many applications. It offers employees the opportunity to be at the heart of this ambitious initiative, while benefiting from enhanced career prospects and the collective strength of the three industry leaders.”
