Leonardo CEO sees satellite JV gaining EU clearance next year

Airbus, Leonardo, and Thales have signed a Memorandum of Understanding (MoU) to combine their satellite and space systems manufacturing and services into a new European entity, aiming to strengthen the continent’s strategic autonomy and competitiveness in the global space market. The new company, expected to be operational by 2027, will bring together Airbus’s Space Systems and Space Digital businesses, Leonardo’s Space Division including its shares in Telespazio and Thales Alenia Space, and Thales’s shares in Thales Alenia Space, Telespazio, and Thales SESO.

The combined entity will have an estimated annual turnover of €6.5 billion and employ around 25,000 people across Europe. Ownership will be split among the parent companies, with Airbus holding 35%, and Leonardo and Thales each holding 32.5%. The venture is expected to generate mid-triple-digit million euros in annual synergies on operating income within five years of its launch.

The initiative, dubbed “Project Bromo,” aims to create a unified and resilient European space player capable of competing with global rivals such as SpaceX’s Starlink. The companies emphasized that the new entity will focus on fostering innovation, enhancing operational efficiency, and delivering integrated solutions across all major space domains.

Regulatory approvals remain a key condition for the transaction to proceed, with the companies stating that employee representatives will be informed and consulted in accordance with applicable laws. The joint venture is seen as a significant step toward consolidating Europe’s space industry and aligning with the strategic goals of European governments to bolster technological sovereignty and industrial capabilities.