Airbus, Leonardo, and Thales will Combine Space Activities into a new European Company
Europe’s top aerospace firms are consolidating their space operations into a single new company. On 23 October, Airbus, Leonardo and Thales signed a memorandum of understanding to combine their satellite and space systems businesses. Under the plan, Airbus will contribute its space systems and digital units, Leonardo its space division and existing joint ventures and Thales its stakes in various space ventures. The combined entity is expected to include about 25,000 employees across Europe and roughly €6.5 billion in pro-forma annual sales (2024 figures). Ownership will be split roughly 35% to Airbus and 32.5% each to Leonardo and Thales. The new consortium is yet to announce a name.
The partners say the deal will bolster European space sovereignty and innovation. In announcing the deal, they noted that space underpins “critical infrastructure and services” (from telecoms and navigation to Earth observation and security) and that a unified firm would give Europe the critical mass to compete globally. Pooling R&D and industrial capacity is expected to accelerate new programs and create major operating efficiencies. The companies call the merger a pivotal milestone for Europe’s space industry, aligning with government ambitions to strengthen technology and reduce reliance on foreign suppliers.
The consolidation is intended to secure Europe’s defense and space capabilities. The venture “will serve as the trusted partner for developing and implementing national sovereign space programmes,” per the official announcement. Political leaders framed it as critical for Europe’s global standing. France’s finance minister stated it would enhance European sovereignty amid fierce global competition. Italy’s industry minister said it would help European champions compete globally. The companies anticipate that the new firm will be operational around 2027.
This merger marks a major reshaping of Europe’s defense-industrial base. By uniting their space capabilities, Airbus, Leonardo and Thales aim to keep critical satellites and technologies under European control. The companies describe the result as “a unified, integrated and resilient European space player, with the critical mass to compete globally”. In practice, this should let Europe develop and launch its own secure communications, navigation and reconnaissance satellites without relying on foreign suppliers, cementing Europe’s strategic autonomy in space.