European aerospace groups Airbus, Thales Group and Leonardo S.p.A. are reportedly finalising an agreement to merge their satellite and space-business divisions into a single European industrial champion. The proposed joint venture, with an estimated value of €10 billion (≈US$11.6 billion), is expected to be headquartered in France and aims to employ more than 25,000 staff across nearly 30 sites in Europe, generating around €6.5 billion in combined annual revenues.
Under preliminary terms, Airbus would hold approximately a 35 % stake, with Thales and Leonardo each holding about 32.5 %. Despite contributing roughly half the business, Airbus accepts the smaller share in exchange for compensation from its new partners.
The move reflects Europe’s response to intensifying global competition in the satellite and space sector, particularly from SpaceX and its Starlink constellation. The deal is modelled on previous pan-European consolidation efforts such as MBDA and is seen as a strategic step to improve scale, cost-efficiency and speed in the face of market disruption.
However, significant hurdles remain. The merger must secure board approvals, navigate antitrust scrutiny by the European Commission and manage complex negotiations around governance, national industrial interests and regulatory oversight.
From a Central European perspective, the consolidation could reshape supply chains and subcontractor opportunities across the region’s space and defence ecosystem—creating both potential benefits and heightened competition for local players.
By: Katerina Urbanova
Sources:
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Reuters: “European aerospace groups reach framework deal on satellite merger, sources say”, Oct 20 2025. Reuters
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Financial Times: “Space groups near deal on creation of European champion”, Oct 21 2025. Financial Times+1
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Reuters: “Airbus, Thales and Leonardo near deal on merger of European space businesses, FT reports”, Oct 21 2025. Reuters
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