European aerospace giants are merging their satellite divisions to compete with Elon Musk’s Starlink

European aerospace giants are merging their satellite divisions to compete with Elon Musk’s Starlink

Three European aerospace companies — Airbus, Thales, and Leonardo — have reached an agreement to merge their loss-making satellite divisions to create a new market player capable of competing with Elon Musk’s Starlink.

This is stated in an official announcement by the companies, as reported by Reuters.

The newly created structure, which does not yet have an official name, will begin operations in 2027, after receiving approval from European regulators.

The company will have 25,000 employees in various European countries, and its annual revenue will be approximately €6.5 billion (based on 2024 figures).

Ownership of the new company will be distributed as follows:

• Airbus — 35%;

• Thales — 32.5%;

• Leonardo — 32.5%.

The company will operate on a “joint control” basis with a balanced management system.

According to the parties’ estimates, the merger will generate hundreds of millions of euros in synergies each year, starting approximately five years after the start of operations.

The project is codenamed Bromo and was initiated last year, modeled on the cooperation model of European missile manufacturer MBDA, which is also controlled by Airbus, Leonardo, and BAE Systems.

The merger will include the manufacturing and service divisions of Thales Alenia Space and Telespazio (joint ventures between Thales and Leonardo), as well as part of Airbus’ space and digital businesses. Other space divisions of Leonardo and Thales SESO will also be included in the structure.

According to the heads of the three companies, the new alliance will help ensure “Europe’s autonomy in the strategic space sector” — particularly in response to the rapid growth of the small satellite market in low Earth orbit, which is dominated by Starlink.

Negotiations between Airbus, Thales, and Leonardo lasted more than a year and, according to Reuters, repeatedly reached an impasse due to disputes over management and asset valuation, but the parties eventually reached a compromise.

In September 2025, Reuters, citing statements by MEPs, wrote that satellite operator Eutelsat needed to attract additional investment from European countries to strengthen its position in the confrontation with Elon Musk’s Starlink.

Read more: NASA plans to place a nuclear reactor on the Moon by 2030. Choosing a location is a key issue