The new entity, employing around 25,000 people, will combine each company’s satellite, communications and space systems capabilities to create what’s being described as a European space champion.
Under the deal, Airbus will hold 35 per cent, while Leonardo and Thales will each hold 32.5 per cent stakes, operating under a shared governance structure.
With an annual turnover of roughly €6.5 billion and a three-year order backlog, the company will bring together complementary technologies spanning telecommunications, Earth observation, navigation, science and defence applications excluding space launchers.
Executives from all three companies said the partnership will deliver growth, accelerate innovation, and give Europe a stronger footing in an increasingly competitive global space market dominated by US and Chinese players.
“This marks a pivotal milestone for Europe’s space industry,” said Airbus CEO Guillaume Faury, Leonardo CEO Roberto Cingolani, and Thales chairman and CEO Patrice Caine. “By pooling our resources and R&D, we aim to strengthen European sovereignty and deliver greater value to customers and stakeholders.”
The merger is expected to unlock hundreds of millions of euros in annual efficiencies within five years, driven by shared research, streamlined production and improved project management. The move aligns with the ambitions of European governments to consolidate industrial capacity and safeguard independent access to space-based infrastructure vital to communications, navigation and defence.
For Australia, the formation of a unified European space giant carries significant opportunities. Canberra already partners closely with Airbus, Thales, and Leonardo across military aviation, satellite communications and space programs.
The combined entity’s scale and technical depth could expand collaboration in secure communications, Earth observation, and space domain awareness – all priorities under Australia’s push for greater sovereign space capability.
Thales Alenia Space has existing partnerships in Australia through the Australian Space Agency and local universities, while Airbus provides key support to Defence’s satellite communications network. With the merger, these relationships may deepen, giving Australia access to a broader European technology base and a potential strategic counterbalance to US dominance in the space sector.
Pending regulatory approval, the new company is expected to be fully operational by 2027, marking a new era of industrial scale, innovation and strategic cooperation in the global space domain.