Europe's big three aerospace manufacturers to create a joint business. This "leading European player in space" could be a real rival to America's SpaceX, according to .
The companies Airbus, Leonardo and Thales have finalized this deal. The new unnamed entity will be based in France and will employ around 25,000 people. Airbus will own 35 percent, while the other two companies will each own 32.5 percent.
Thales, Leonardo and Airbus have signed a Memorandum of Understanding aimed at creating a leading European player in space.
Read the full announcement here: https://t.co/bbhPWU5hWd#Europe #Space @Airbus @Leonardo_live @Thales_Alenia_S @Telespazio @AirbusSpace @LDO_Space pic.twitter.com/iz8IsChAhb
— Thales Group (@thalesgroup) October 23, 2025
Executives are hoping this company will better serve Europe's need for "sovereignty" in space and help it create a rival to SpaceX's Starlink communications network. Increasing a presence in space is also seen as a good thing for security and defense.
"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," the companies wrote in a joint statement. "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 isn't just bluster. Thales and Airbus have long been rivals in the satellite market, but it looks like they are friends now. Leonardo is known for space systems and services. Combining all three could actually give SpaceX a run for its money, but we will have to wait and see.
There are no planned site closures, as the companies say that each home country will keep its existing capabilities. This will be a standalone company, so think of it as an extremely well-financed startup. The first task for the upstart? Reporting indicates it'll be to find more efficient ways to develop and manufacture satellites.
Discussions about this merger have been going on since 2019. Regulators still have to approve the deal, though the companies say they expect the new entity will be operational by 2027.
Starship reenters Earth’s atmosphere on Flight 11. Data gathered from this flight will inform future Starship missions that will return to the launch site for catch and reuse pic.twitter.com/34WV9ZVtAA
— SpaceX (@SpaceX) October 17, 2025
As for SpaceX, the company is of its Starship super-heavy lift vehicle. It's also slowly , but that recently hit a snag that could mandate a lengthy delay.
This article originally appeared on Engadget at https://www.engadget.com/science/space/europes-big-three-aerospace-manufacturers-combine-their-space-divisions-to-create-a-rival-to-spacex-153424228.html?src=rss
