European companies Airbus, Leonardo and Thales are to create a new company to rival Elon Musk’s Starlink by merging their satellite manufacturing and services businesses.
The move will combine Airbus Defence and Space’s Space Systems and Space Digital businesses, Leonardo’s Space Division and Thales’ shares in Thales Alenia Space, Telespazio, and Thales SESO.
The new company, which could be operational in two years subject to regulatory approvals is yet to be officially named. A project set up to create the company started around a year ago and is called “Bromo”.
Airbus will own 35% of the firm, with Leonardo and Thales holding 32.5% stakes each. Based on 2024 figures Bromo will employ around 25,000 people and have an annual turnover of about €6.5 billion.
The company, which will be founded with a three-year backlog of orders according to Airbus, will build and develop technologies for space infrastructure and services, apart from launch systems.
The merger has been widely interpreted as a way for the European companies to compete globally in the future with cheaper rivals such as Musk’s Starlink, as well as to strengthen European capabilities in the space sector.
Employee representatives from Airbus, Leonardo and Thales are to be consulted about the merger over the coming months.
In a joint statement, the CEO of Airbus, Guillaume Faury, Leonardo’s CEO Roberto Cingolani and Thales’ CEO Patrice Caine said: “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.”
