🔗 Share this article Major European Space Companies Unite to Create Competitor to Musk's SpaceX Three leading EU-based aerospace companies—the Airbus Group, Leonardo, and Thales—have now sealed a major deal to merge their space businesses. This collaboration seeks to form a unified European tech enterprise poised of competing with Elon Musk's SpaceX. Economic Aspects and Ownership Breakdown The newly formed entity is projected to achieve annual sales of around €6.5bn (£5.6bn). Under the arrangement, the French aerospace giant Airbus will control a thirty-five percent share in the venture. Meanwhile, both Italy's Leonardo and France's Thales will each own 32.5% ownership. Scale and Objectives of the New Enterprise The unnamed merger constitutes one of the largest partnerships of its type across the European continent. It will unite various capabilities in building satellites, space systems, components, and services from leading defense and aerospace producers. The CEO of Airbus, Roberto Cingolani, and Patrice Caine jointly declared, “The new venture represents a pivotal milestone for the European space sector.” They continued, “Through combining our talent, resources, expertise, and R&D strengths, we aim to generate growth, speed up innovation, and deliver enhanced benefits to our clients and partners.” Business Information and Schedule This new company will be based in Toulouse and employ about 25,000 people. The entity is planned to be operational in 2027, following regulatory approvals. As per the partners, it is projected to generate “hundreds of” euros in millions in cost savings on operating income per year, beginning following a five-year timeframe. Background and Motivation Reports suggest that discussions among Airbus, Leonardo, and Thales began last year. The move aims to mirror the model of the European missile manufacturer MBDA, which is jointly held by Airbus, Leonardo, and BAE Systems. Despite significant job cuts in their space-related units in the past few years, the firms assured that there would be zero immediate facility shutdowns or job losses. Nonetheless, they confirmed that unions would be consulted throughout the project. Past Struggles in Space-Related Business The companies have faced setbacks in their space operations recently. Last year, Airbus incurred 1.3 billion euros in losses from underperforming space contracts and revealed two thousand job cuts in its defence and space division. Similarly, the Thales Alenia Space joint venture, a partnership of Thales and Leonardo, cut more than one thousand positions last year. Global Market Environment Meanwhile, Elon Musk's SpaceX, founded in 2002, has expanded to become one of the largest startups worldwide, with a valuation of {$$400bn. It dominates both the space launch and satellite-based internet markets. Its primary competitors are additional American companies such as United Launch Alliance, a joint venture between Boeing and Lockheed Martin, and Blue Origin, created by technology tycoon Jeff Bezos. Earlier this month, SpaceX successfully flew its eleventh Starship rocket from Texas, landing in the Indian Ocean. Earlier in August, US President Donald Trump approved an executive order to simplify rocket launches, easing rules for commercial space companies.