Airbus, Leonardo and Thales have signed a Memorandum of Understanding (MoU) to merge their respective space-related activities into a single European company, aimed at consolidating the continent’s role in the global space industry.
The new entity, expected to become operational in 2027 pending regulatory approval, will integrate the three companies’ capabilities in satellite and space systems manufacturing and space services, excluding launch activities. The project seeks to strengthen Europe’s strategic autonomy in a sector that underpins critical functions such as telecommunications, navigation, earth observation, exploration and defense.
Structure and ScopeUnder the proposed agreement, Airbus will contribute its Space Systems and Space Digital units from Airbus Defence and Space. Leonardo will provide its Space Division, including stakes in Telespazio and Thales Alenia Space, while Thales will contribute its holdings in Thales Alenia Space, Telespazio and Thales SESO.
The combined company will employ approximately 25,000 people across Europe, with a pro-forma annual turnover of around €6.5 billion and an order backlog exceeding three years of projected sales. Ownership will be shared among Airbus (35%), Leonardo (32.5%) and Thales (32.5%), with joint governance and balanced control among the partners.
The initiative is intended to enhance Europe’s competitiveness and innovation capacity in the global space market by pooling resources, R&D expertise and production capabilities. According to the companies, the merger is expected to deliver mid triple-digit million euros in annual operating synergies within five years after completion.
The collaboration will focus on:
- Developing integrated space infrastructure and services.
- Strengthening Europe’s industrial and technological base.
- Supporting national and European sovereign space programs.
- Expanding international market reach through a broader product and service portfolio.
Guillaume Faury, CEO of Airbus, Roberto Cingolani, CEO and General Manager of Leonardo, and Patrice Caine, Chairman and CEO of Thales, stated:
“This proposed new company marks a pivotal milestone for Europe’s space industry. It embodies our shared vision to build a stronger and more competitive European presence in an increasingly dynamic global space market. By pooling our talent, resources, expertise and R&D capabilities, we aim to generate growth, accelerate innovation and deliver greater value to our customers and stakeholders.”
They added that the initiative aligns with European governments’ ambitions to enhance industrial and technological independence in space, while providing employees with new career opportunities across an expanded multinational network.
Employee consultations will take place in accordance with national laws and collective agreements. The completion of the transaction remains subject to regulatory approval and other customary conditions, with the company expected to launch operations in 2027.