European Aerospace Firms Near Satellite Venture Deal

• Thales, Airbus, and Leonardo are advancing talks to form a €10B satellite joint venture aimed at strengthening Europe’s position in space manufacturing.

Strategic Collaboration Gains Momentum

Three of Europe’s leading aerospace companies—Thales, Airbus, and Leonardo—are working toward an initial agreement to merge their satellite operations into a joint venture valued at approximately €10 billion. Known internally as “Project Bromo,” the initiative aims to establish a French-headquartered satellite manufacturer capable of competing with global players such as China’s state-backed firms and Elon Musk’s Starlink. Discussions had stalled earlier this summer due to disagreements over governance and valuation, but sources close to the matter say negotiations have recently regained traction. A memorandum of understanding could be signed by the end of September, although delays remain possible.

Political support for the venture has been described as generally positive, though final approval will require sign-off from multiple European governments. The proposed structure includes safeguards to protect sensitive national interests, likely through dedicated entities within the venture. Ownership is expected to be divided roughly equally among the three companies, though exact terms are still under negotiation. The estimated valuation reflects combined revenues of €6–6.5 billion and aligns with industry benchmarks that value satellite businesses at 1.5 to 3 times revenue.

Regulatory and Political Considerations

Airbus CEO Guillaume Faury confirmed that talks with European governments are ongoing and that the companies have begun the process of seeking antitrust clearance. He noted that stakeholder engagement is underway and emphasized the collaborative nature of the effort. Thales, while acknowledging continued work on the project, stated that no formal agreement has been reached. Leonardo declined to comment on the negotiations.

Previous attempts to create a unified European satellite entity have faltered due to regulatory hurdles and national rivalries. However, the rapid expansion of low-orbit satellite networks and the dominance of Starlink have added urgency to the current effort. Analysts suggest that Europe’s fragmented satellite industry risks falling behind unless assets are consolidated. The venture is part of a broader push to enhance Europe’s technological sovereignty amid shifting geopolitical dynamics and evolving U.S. policy.

Structural Model and Historical Parallels

Sources indicate that the new company may be headquartered in Toulouse, France, where Airbus has its main operations, although final decisions on corporate structure remain unsettled. Locating power centers within Europe’s aerospace sector has historically been a sensitive issue, often influenced by national interests and industrial policy. The joint venture is expected to follow a model similar to MBDA, a missile manufacturer jointly owned by Airbus, Leonardo, and BAE Systems. MBDA was formed in 2001 through the merger of several national defense firms and operates with a blend of shared and protected activities.

Like MBDA, the satellite venture would combine cross-border collaboration with mechanisms to safeguard strategic technologies. All three firms have minority government ownership, which adds complexity to negotiations involving defense-related assets. The deal, if finalized, could mark a significant step toward creating a standalone European satellite champion. Such a move would not only consolidate industrial capabilities but also signal a coordinated response to global competition in space infrastructure.