European Aerospace Giants Leonardo, Airbus, and Thales Forge €10 Billion Satellite Merger”

European aerospace leaders Leonardo, Airbus, and Thales have reached a framework agreement to merge their satellite operations into a €10 billion joint venture. This strategic move, codenamed “Project Bromo,” aims to strengthen Europe’s position in the global satellite market, particularly against competitors like Elon Musk’s Starlink.

The proposed venture will combine Airbus’s satellite segment with Thales Alenia Space and Telespazio, ventures partially controlled by Thales and Leonardo. While the deal has been in discussions for over a year, it faced delays due to disagreements over governance, valuation, and the division of technology and jobs between France and Italy.

Leonardo is scheduled to hold an extraordinary board meeting to review the merger details. However, the agreement still requires approval from the boards and regulatory bodies, including the European Commission, which is expected to conduct an antitrust review.

The satellite industry is experiencing significant growth, with projections indicating over 43,000 satellites will launch in the next decade, representing a $665 billion market. This consolidation aims to enhance Europe’s competitiveness in this rapidly evolving sector.