Airbus, Leonardo, and Thales have agreed to merge their satellite and space operations to create a major European force in the global space industry. The new joint venture aims to develop a full suite of technologies and services, ranging from satellite infrastructure to advanced space-based solutions. Space launcher development will remain separate from its scope.

The combined company will employ around 25,000 people across Europe and is expected to deliver strong financial benefits, including mid-triple-digit million euros in annual synergies within five years. Market confidence rose after the announcement, with European defense stocks climbing and shares of Leonardo, Thales, and Airbus all trading higher.

Ownership of the company will be divided with Airbus holding 35%, while Leonardo and Thales will each take 32.5%. The contributions include Airbus’ Space Systems and Space Digital units, Leonardo’s entire Space division, and Thales’ shares in Thales Alenia Space along with its Thales SESO business.

Leaders from the companies emphasized that this move strengthens Europe’s control over its strategic space activities. It supports the region’s push for independence from foreign satellite networks and helps safeguard sovereign communications.

This initiative also represents Europe’s ambition to provide a strong alternative to Starlink, the satellite internet network owned by SpaceX that currently dominates much of the market. With geopolitical developments highlighting the importance of secure communication systems, European governments have been eager to invest more heavily in space and defense.

By uniting their capabilities and expertise, Airbus, Leonardo, and Thales plan to ensure Europe remains competitive and resilient in a rapidly changing space economy.