Leonardo, Airbus, and Thales Merge Satellite Operations in €6.5 Billion Deal

Europe's aerospace and defense giants Leonardo, Airbus, and Thales have finalized a preliminary agreement to merge their satellite operations, creating a new entity with projected annual sales of €6.5 billion ($7.5 billion). The deal, struck after months of negotiations, will see Airbus take a 35% stake while Leonardo and Thales each hold 32.5%.

The consortium aims to replicate the success of MBDA, their jointly-owned missile business, but faces significant challenges in competing against dominant American and Chinese space players. With SpaceX's growing influence in military and commercial space applications, European industry leaders are increasingly concerned about overreliance on foreign providers.

Pending regulatory approval, the combined operation is expected to launch in 2027, incorporating Airbus's Space Systems and Space Digital units, Leonardo's Telespazio, and Thales's Thales Alenia Space and Thales SESO assets. The MOVE represents Europe's strategic attempt to regain footing in the global space race.