🔗 Share this article Major European Space Companies Unite to Create Competitor to Elon Musk's SpaceX Three leading EU-based aerospace firms—Airbus, Leonardo S.p.A., and Thales—have now finalized a strategic deal to combine their space-related businesses. This collaboration aims to form a single pan-European technology enterprise capable of rivaling with Elon Musk's SpaceX venture. Financial Details and Ownership Structure This newly formed entity is projected to achieve yearly revenue of approximately €6.5bn (5.6 billion pounds). As per the arrangement, the French aerospace giant Airbus will hold a thirty-five percent share in the venture. Meanwhile, both Italy's Leonardo and Thales will each own 32.5% ownership. Scope and Goals of the New Enterprise This unnamed merger represents one of the largest consolidations of its kind across the European continent. It will unite diverse capabilities in satellite manufacturing, space systems, parts, and services from leading defense and aerospace producers. The CEO of Airbus, Leonardo's chief executive, and Patrice Caine collectively declared, “The new venture represents a crucial milestone for Europe's space sector.” They continued, “Through combining our expertise, resources, expertise, and R&D strengths, we aim to drive expansion, accelerate innovation, and provide enhanced value to our customers and partners.” Business Information and Schedule The new company will be based in Toulouse and have a workforce of about twenty-five thousand employees. It is planned to be fully functional in 2027, following regulatory approvals. As per the companies, it is expected to generate “mid-triple digit” millions of euros in cost savings on annual profit per year, beginning after a five-year timeframe. Background and Motivation Reports suggest that talks between Airbus, Leonardo, and Thales started the previous year. The move seeks to mirror the model of the European missile manufacturer MBDA, which is jointly held by Airbus, Leonardo, and BAE Systems. Despite significant workforce reductions in their space-related divisions in the past few years, the firms assured that there would be no immediate site closures or job losses. However, they noted that unions would be engaged during the process. Past Struggles in Space Operations These companies have faced setbacks in their space ventures in recent times. Last year, Airbus recorded 1.3 billion euros in losses from unprofitable space projects and revealed two thousand redundancies in its defense and space sector. In a similar vein, the Thales Alenia Space joint venture, a collaboration of Thales and Leonardo, eliminated more than 1,000 jobs last year. Global Market Landscape Meanwhile, Elon Musk's SpaceX, founded in 2002, has expanded to emerge as one of the biggest private companies globally, with a valuation of {$$400bn. SpaceX leads both the space launch and satellite internet markets. Its main rivals include additional American companies such as United Launch Alliance, a joint venture between Boeing and Lockheed Martin, and Blue Origin, founded by technology tycoon Jeff Bezos. Earlier this month, SpaceX launched its 11th Starship rocket from Texas, USA, landing in the Indian Ocean. Earlier in August, American President Donald Trump approved an presidential directive to streamline rocket launches, relaxing regulations for private space companies.