Europe’s three major technology giants – Airbus, Leonardo, and Thales – have signed a Memorandum of Understanding to establish a new company that will unite their activities in space systems and services, aiming to strengthen the continent’s strategic autonomy.
Airbus (AIR), Leonardo (LDO), and Thales (HO) have signed a Memorandum of Understanding (“MoU”) to establish a new European space company aimed at enhancing Europe’s competitiveness in the space industry. This strategic partnership seeks to bring together Europe’s capabilities in space systems manufacturing, satellite technologies, and space services, with the goal of achieving a stronger position in the global market.
The new company is expected to become operational in 2027 following the necessary regulatory approvals. Its establishment is regarded as a significant milestone that will boost Europe’s innovation capacity in the space domain, reinforce its strategic autonomy, and strengthen its global competitiveness.
The structure to be created by combining the complementary expertise of Airbus, Leonardo, and Thales will operate in areas such as telecommunications, global navigation, Earth observation, scientific exploration, and national security. The company will act as a trusted partner in the development and implementation of sovereign space programmes at both national and European levels.
The new entity is expected to accelerate the European space ecosystem by offering end-to-end solutions and integrated technologies — from space infrastructure to services (excluding launch activities). It is projected to generate annual synergies worth several hundred million euros within five years after completion of the merger.
Structural Contributions:
- Airbus will contribute the Space Systems and Space Digital business units of Airbus Defence and Space.
- Leonardo will transfer its Space Division, along with its stakes in Telespazio and Thales Alenia Space.
- Thales will contribute its holdings in Thales Alenia Space, Telespazio, and Thales SESO.
The new company will employ approximately 25,000 people across Europe and have a pro forma annual turnover of €6.5 billion. The shareholding structure will be divided as follows: Airbus 35%, Leonardo 32.5%, and Thales 32.5%. The company will operate under joint control with a balanced governance structure among the three partners.
In a joint statement, Airbus CEO Guillaume Faury, Leonardo CEO Roberto Cingolani, and Thales CEO Patrice Caine said:
“This new organisation marks a historic turning point for Europe’s space industry. By combining our resources and expertise, we aim to accelerate innovation and build a stronger, more competitive European presence in the global market. This partnership represents a decisive step towards securing Europe’s strategic autonomy in space.”
The new European space player aims to lead innovative programmes by pooling research and development investments, improving operational efficiency through economies of scale, strengthening international partnerships, and supporting the European supply chain.
For employees, the new company will also create new career opportunities thanks to its wide international presence and advanced technological capabilities.
The completion of the transaction is subject to the approval of the relevant regulatory authorities, and the company is expected to begin operations in 2027.
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