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Airbus, Leonardo and Thales Sign Pact to Combine Satellite Businesses in Toulouse-Based Venture

Whether the venture starts in 2027 now hinges on regulatory, government, union approvals.

Overview

  • The preliminary memorandum of understanding merges satellite manufacturing, space systems and services while excluding launchers such as Ariane.
  • Ownership is set at Airbus 35% and Thales and Leonardo 32.5% each, with about 25,000 employees and roughly €6.5 billion in annual revenue based on 2024 figures.
  • The companies frame the deal as strengthening Europe’s strategic autonomy in space and boosting competitiveness against low‑Earth‑orbit constellations like SpaceX’s Starlink.
  • The new entity, code‑named Project Bromo, will be headquartered in Toulouse and modeled on joint‑control governance, with detailed leadership arrangements to be decided.
  • Management projects “mid‑triple digit” millions of euros in annual operating synergies after five years, with union consultations ahead and antitrust scrutiny expected given reduced supplier choice in Europe.