The companies \u2014 each a heavyweight in the aerospace and defense sector in their own right \u2014 said the joint venture would develop and build, “a\u00a0comprehensive portfolio of complementary technologies and end-to-end solutions, from space infrastructure to services.” The development of space launchers will be excluded from the new company’s operations.<\/p>\n
The combined entity is expected to generate mid-triple-digit million euros in annual synergies on operating income within five years of closing, and it’s set to employ 25,000 people across Europe.<\/p>\n
European defense stocks jumped on Thursday, with the regional Stoxx Aerospace and Defense index adding 0.9%. Leonardo shares were last seen trading 1.8% higher, while Thales gained 0.6% and Airbus was up by 0.2%.<\/p>\n
Airbus will be the majority owner of the new joint venture with a 35% stake, and will contribute its Space Systems and Space Digital businesses from its defense and space division. Leonardo and Thales will each hold a 32.5% stake in the new company.<\/p>\n
Leonardo’s contribution will be its entire Space division, including its shares in Rome-based spaceflight services firm Telespazio and Thales Alenia Space, an existing joint venture with Thales. Thales will also add its stake in Thales Alenia Space to the new company, as well as its Thales SESO operation.\u00a0<\/p>\n
The firms said the new space entity would be “a unified, integrated and resilient European space player, with the critical mass to compete globally and grow on the export markets.”<\/p>\n “This new company also intends to serve as the trusted partner for developing and implementing national sovereign space programs,” they added.<\/p>\n Touting the joint venture as “a pivotal milestone for Europe’s space industry,” the chief executies of the firms said in a joint statement that it would help\u00a0“build a stronger and more competitive European presence in an increasingly dynamic global space market.”\u00a0<\/p>\n They stressed that the move would allow Europe to retain control over its domestic space operations, as regional governments\u00a0look to pour cash<\/a>\u00a0into their aerospace and defense capabilities.\u00a0<\/p>\n Starlink rival<\/p>\n Europe has been looking for an alternative to Starlink, the satellite broadband service owned by Musk’s space exploration firm SpaceX that currently dominates the sector and has a vast presence across Europe.<\/p>\n Starlink has played a critical role<\/a>\u00a0in Ukraine’s war effort since Russia’s full-scale invasion of the country in 2022, but issues have\u00a0reportedly arisen in the past<\/a>\u00a0with communication blackouts. Earlier this year, it\u00a0was rumored<\/a>\u00a0that Eutelsat \u2014 the French firm that merged with Britain’s OneWeb in 2023 \u2014 was in the running to replace Starlink in Ukraine.\u00a0<\/p>\n French President Emmanuel Macron, meanwhile, has backed the concept of a European satellite champion,\u00a0arguing in a speech<\/a>\u00a0over the summer that “space has in some way become a gauge of international power.” Meanwhile, Italian lawmakers\u00a0warned<\/a>\u00a0against involving SpaceX in an update to the country’s satellite program back in July.<\/p>\n Speculation that Airbus, Leonardo and Thales would join forces on satellite functions has been building for some time.\u00a0Back in April<\/a>, Leonardo CEO Roberto Cingolani told CNBC he was hopeful the alliance would come to fruition in the coming months.<\/p>\n He said at the time that the joint venture would not be specifically designed to challenge Starlink, but to provide a European alternative.<\/p>\n![\"New](\"https:\/\/www.newsbeep.com\/ie\/wp-content\/uploads\/2025\/10\/108118944-1742476713593-gettyimages-1445711853-sg019025_53fb9303-3ecf-45d7-afa0-9bcf6ed94016.jpeg\")
<\/a>Europe wants to pour billions of dollars into its own defense companies \u2014 but market watchers say it may not be able to shut American firms out<\/a><\/p>\n![\"We](\"https:\/\/www.newsbeep.com\/ie\/wp-content\/uploads\/2025\/10\/108129067-thumb.PNG\")
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