Airbus, Leonardo and Thales have struck a deal to combine their space businesses, promising “significant synergies” in a bid to create a stronger European competitor in a market upended by Elon Musk’s SpaceX.
The three companies said they had signed a memorandum of understanding to create a new entity that would deliver efficiencies and cost savings amounting to “mid-triple-digit millions” of euros in operating income five years after closing. Further operational savings could be expected in the long-term.
Europe has been struggling to respond to significant shifts in demand for satellites from the rapid expansion of SpaceX’s Starlink communications network in low Earth orbit.
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