Airbus, Leonardo and Thales to create a Toulouse-based enterprise employing approximately 25,000 people with combined annual revenues reaching €6.5 billion.
Three European manufacturers have agreed to merge their space operations into a unified company positioned to compete with Elon Musk's SpaceX.
The newly formed corporation will consolidate satellite production, space systems and component manufacturing from Europe's leading aerospace defense contractors.
Airbus will maintain 35 percent ownership while Leonardo and Thales each retain 32.5 percent stakes in the venture, which requires regulatory clearance before becoming operational in 2027.
Company executives Guillaume Faury of Airbus, Roberto Cingolani of Leonardo and Patrice Caine of Thales described the partnership as "a pivotal milestone for Europe's space industry" in their joint declaration.
The leadership expects "mid-triple digit" million-euro annual synergies beginning five years after establishment, though union consultations will address potential operational impacts.
The consolidation follows significant restructuring within European space manufacturing, including Airbus absorbing €1.3 billion in contract charges and eliminating 2,000 positions last year.
The collaborative model mirrors European missile producer MBDA's successful structure, aiming to enhance competitiveness against SpaceX's estimated $400 billion market valuation and dominant positions in rocket launches and satellite internet services.
