European aerospace firms have agreed on a project to create a European giant with an annual revenue of 6.5 billion euros, which will compete with Elon Musk's company. UNN reports with reference to DW and Reuters.
Details
Airbus, Thales, and Leonardo have completed the first stage of launching a new European technology concern in the satellite business. The enterprise will start operating in 2027 and is planned to provide jobs for 25,000 people. The planned revenue level is 6.5 billion euros.
The largest shareholder, with a 35% stake, will be Airbus, which is to contribute its space systems and digital space technologies divisions to the joint project. The rocket and space business, which in the case of Airbus is integrated into Arianespace, a subsidiary with a 50% stake in the French company Safran, will be excluded from the merger.
The Italian company Leonardo will own 32.5% and will have the opportunity to manage its own space division, with stakes in Telespazio and Thales Alenia Space. The French company Thales will have a similar level, primarily investing its stakes in Thales Alenia Space, Telespazio, and Thales SESO.
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Reference
Negotiations under the code name "Project Bromo" between the three aerospace groups began in 2024, with the aim of creating a cooperation model similar to the European missile manufacturer MBDA, which is owned by Airbus, Leonardo, and BAE Systems.
Addition
Over five years, the synergy is expected to bring the company "mid-three-digit" millions of euros. How exactly this will be achieved is not yet known.
Currently, shareholders have to negotiate with governments, trade unions, and the European Commission on an agreement that has implications for operations in the UK and Germany, as well as Italy and France, where the enterprise will be based.
Recall
UNN reported that three leading European space companies plan to create a joint venture to compete with Starlink. The project, code-named "Bromo," involves the development of a new super-satellite.
In October 2024, Airbus planned to cut up to 2,500 jobs in its defense and space division due to a "challenging business environment"