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Three leading EU-based space technology companies—Airbus, Leonardo, and Thales Group—have now finalized a major agreement to combine their space-related operations. The collaboration aims to establish a unified European technology company capable of rivaling with the SpaceX.

Financial Aspects and Ownership Breakdown

The newly formed company is projected to achieve yearly sales of approximately €6.5bn (£5.6bn). Under the arrangement, Airbus will hold a thirty-five percent share in the venture. Meanwhile, both Leonardo and France's Thales will each own 32.5% ownership.

Scope and Objectives of the New Company

The yet-to-be-named alliance represents one of the biggest partnerships of its kind across the European continent. It will bring together diverse capabilities in building satellites, space systems, parts, and services from top defense and aerospace producers.

The CEO of Airbus, Roberto Cingolani, and Thales's CEO collectively stated, “The new venture represents a crucial step for Europe's space sector.” The executives added, “By combining our expertise, resources, expertise, and R&D strengths, we intend to drive growth, accelerate innovation, and deliver greater value to our customers and partners.”

Operational Information and Timeline

This combined company will be based in Toulouse and employ approximately 25,000 people. It is planned to be fully functional in 2027, following necessary clearances. According to the partners, it is expected to generate “mid-triple digit” millions of euros in cost savings on operating income per year, starting after a five-year period.

Context and Reasons

Sources suggest that talks among Airbus, Leonardo, and Thales began last year. The initiative aims to mirror the model of the European missile manufacturer MBDA, which is owned by Airbus, Leonardo, and BAE Systems.

Although significant job cuts in their space units in recent years, the companies assured that there would be no immediate facility shutdowns or layoffs. However, they noted that labor representatives would be engaged throughout the project.

Past Struggles in Space-Related Operations

These firms have faced difficulties in their space operations recently. Last year, Airbus recorded €1.3bn in charges from unprofitable space projects and revealed two thousand job cuts in its defence and space sector. In a similar vein, the Thales Alenia Space joint venture, which is a collaboration between Thales and Leonardo, cut more than one thousand jobs last year.

Worldwide Competitive Environment

Meanwhile, the SpaceX, founded in 2002, has grown to become one of the largest startups globally, with a market value of {$$400bn. SpaceX dominates both the rocket launch and satellite internet markets. Its main rivals are other US companies such as United Launch Alliance, a joint venture of Boeing and Lockheed Martin, and Blue Origin, founded by technology tycoon Jeff Bezos.

Just this month, the company successfully flew its eleventh Starship rocket from Texas, touching down in the Indian Ocean. Earlier in August, US President Donald Trump approved an executive order to streamline rocket launches, relaxing regulations for private space companies.