Determined not to let SpaceX's Starlink dominate the fast-growing market for low-Earth-orbit (LEO) satellite communications, Airbus, Thales, and Leonardo — three of Europe's largest aerospace and defense contractors — have agreed to combine parts of their satellite manufacturing and service businesses into a new joint venture.
The yet-to-be-named company, which will be headquartered in France and is expected to begin operations in 2027, represents Europe's largest aerospace consolidation since the formation of missile maker MBDA in 2001.
The project, code-named Project Bromo, has been under negotiation since 2024 and is aimed squarely at countering Starlink's growing dominance, Reuters reported. European firms have long excelled in building geostationary (GEO) satellites, but they have struggled to keep pace with the smaller, cheaper LEO constellations that have reshaped the global space economy.
A new European space powerhouse
The venture is expected to employ about 25,000 people and generate roughly EUR6.5 billion (US$7.5 billion) in annual revenue. Executives hope the merger will create a globally competitive European satellite champion, reviving an industry that has suffered from years of sluggish profitability.
After months of negotiations, the companies agreed on a governance structure that avoids rotating leadership or nationality-based appointments — a frequent source of tension in earlier European aerospace alliances.
Before the company can officially launch, it must receive approvals from the European Commission, as well as from national governments, regulators, and labor unions in France, Italy, Germany, and the United Kingdom.
Defining Europe's space future
The merged operations will include Thales Alenia Space and Telespazio — joint ventures of Thales and Leonardo — alongside parts of Airbus's space and digital divisions, as well as other satellite businesses owned by Leonardo and Thales SESO.
Under the agreement, Airbus will hold a 35% stake, while Thales and Leonardo will each own 32.5%.
Previous attempts by the three companies to form similar alliances were blocked on antitrust grounds. Eutelsat, one of Europe's largest satellite operators and a major customer, said it would closely monitor the merger's impact, while Germany's smaller satellite manufacturer OHB has reportedly expressed concerns about further consolidation in Europe's space sector.
A push for European space autonomy
According to CNBC, executives noted that the merger is designed to preserve Europe's leadership in the space sector at a time when governments across the continent are ramping up aerospace and defense spending. The new company is being positioned as a strategic step to safeguard Europe's technological sovereignty and reduce reliance on foreign — particularly American — systems.
Europe has long sought an alternative to Starlink, the satellite broadband network owned by Elon Musk's Space Exploration Technologies Corp., which dominates both global and European markets.
Starlink played a crucial role in maintaining communications during the war in Ukraine following Russia's 2022 invasion, though reports have also emerged of temporary outages in the region.
French President Emmanuel Macron has been a vocal proponent of building European satellite autonomy, declaring that "space has, in many ways, become a measure of international power." In July 2025, Italy's parliament similarly urged its government to exclude SpaceX from upcoming national satellite modernization programs.
Article edited by Jerry Chen
