Airbus, Leonardo and Thales sign MOU to form new European space company

Summary Points: 

• Ownership will be split with Airbus holding 35 percent, and Leonardo and Thales each holding 32.5 percent. The new company will operate under joint control with balanced governance among shareholders.
• The new entity aims to strengthen Europe’s strategic autonomy in space and serve as a trusted partner for national sovereign space programs.
• Airbus will contribute its Space Systems and Space Digital businesses from Airbus Defence and Space; Leonardo will contribute its Space Division, including shares in Telespazio and Thales Alenia Space; and Thales will contribute its shares in Thales Alenia Space, Telespazio and Thales SESO.

PARIS - Airbus in Toulouse, France; Leonardo in Rome; and Thales in Paris have signed a memorandum of understanding to combine their respective space activities into a new company. The companies say the joint effort aims to strengthen Europe’s strategic autonomy in space, supporting critical infrastructure and services related to telecommunications, navigation, earth observation, science, exploration, and national security. 

The company will combine and develop a portfolio of complementary technologies and end-to-end solutions, from space infrastructure to services, excluding launchers. Officials said the merger aims to accelerate innovation and establish a unified, integrated, and resilient European space organization with the scale to compete globally and expand into export markets.

The new company will unite investments in future space products and services, leveraging the expertise of all three partners. This collaboration is expected to deliver mid-triple-digit million euros in annual operating income synergies within five years of closing. 

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Project aims

Officials stated that the project aims to unlock new revenue opportunities by expanding the portfolio of end-to-end products and services, providing a more competitive and globally integrated platform. Additional operational efficiencies in engineering, manufacturing, and project management are expected to promote long-term growth and value creation.

Upon closing, Airbus will contribute its Space Systems and Space Digital businesses from Airbus Defence and Space. Leonardo will contribute its Space Division, including its shares in Telespazio and Thales Alenia Space. Thales will contribute its shares in Thales Alenia Space, Telespazio, and Thales SESO.

Ownership of the company will be divided among Airbus, Leonardo, and Thales, with Airbus holding 35 percent, and Leonardo and Thales each holding 32.5 percent. The new entity will operate under joint control with balanced governance among shareholders.

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In a joint statement, Guillaume Faury, chief executive officer of Airbus; Roberto Cingolani, chief executive officer and general manager of Leonardo; and Patrice Caine, chairman and chief executive officer of Thales, said:

"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. This partnership aligns with the ambitions of European governments to strengthen their industrial and technological assets, ensuring Europe’s autonomy across the strategic space domain and its many applications. It offers employees the opportunity to be at the heart of this ambitious initiative, while benefiting from enhanced career prospects and the collective strength of the three industry leaders."