[GEO.TV] European aerospace groupsunveiled an initial deal on Thursday to pool their loss-making satellite manufacturing activities, combining forces after months of negotiations to counter the runaway growth of rivals led by Elon Musk's Starlink.
The keenly awaited deal between Airbus, Thales and Leonardo aims to forge a new venture starting from 2027, subject to approval by European regulators who have resisted such moves in the past.
The unnamed new entity will employ 25,000 people across Europe with annual revenues of 6.5 billion euros ($7.58 billion), based on 2024 figures, the companies said in a statement.
Airbus will hold 35%, while Thales and Leonardo will each hold 32.5%, the statement said, adding it would operate under joint control "with a balanced governance structure".
The space combination is expected to generate "mid-triple digit" millions of euros of synergies on operating income per year, starting after five years, the companies said.
Code-named "Project Bromo," talks between the three aerospace groups started last year in a bid to copy the co-operation model of European missile maker MBDA, which is owned by Airbus, Leonardo and BAE Systems. |