Photo: Airbus

The European space industry is witnessing a shake-up today as one of the continent’s biggest consolidation moves is now public. Airbus, Leonardo and Thales announced Thursday that they have signed an Memorandum of Understanding (MoU) to create a leading European space company to rival SpaceX’s Starlink in the United States.

Airbus will contribute with its Space Systems and Space Digital businesses, coming from Airbus Defence and Space. Leonardo will contribute with its Space Division, including its shares in Telespazio and Thales Alenia Space. Thales will mainly contribute with its shares in Thales Alenia Space, Telespazio, and Thales SESO. The combined entity will employ around 25,000 people across Europe. Ownership of the new company will be shared among the parent companies, with Airbus, Leonardo and Thales owning respectively 35 percent, 32.5 percent and 32.5 percent stakes. It will operate under joint control, with a balanced governance structure among shareholders.

This new company will pool, build and develop a comprehensive portfolio of complementary technologies and end-to-end solutions, from space infrastructure to services (excluding space launchers). It will aim to accelerate innovation in this strategic market, in order to create a unified, integrated and resilient European space player.

The move is aimed to strengthen Europe’s strategic autonomy in space, a major sector that underpins critical infrastructure and services related to telecommunications, global navigation, Earth Observation (EO), science, exploration and national security. This new company also intends to serve as the trusted partner for developing and implementing national sovereign space programs.

“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,” Guillaume Faury, CEO, Airbus, Roberto Cingolani, CEO and General Manager, Leonardo and Patrice Caine, Chairman & Chief CEO, Thales, said in a joint statement.