Airbus, Leonardo and Thales are preparing to combine their satellite divisions under a venture codenamed Project Bromo, in what could become one of Europe’s most ambitious industrial consolidations in recent years.
The deal, expected to reach a framework agreement by the end of 2024 and close in 2025, aims to create a continental champion capable of competing with Elon Musk’s SpaceX and its Starlink constellation, as well as China’s state-backed space programmes. For Brussels, the plan would mark a step towards greater “strategic autonomy” in a sector increasingly seen as vital to communications, security and defence.
For Airbus [Euronext:AIR], Europe’s largest aerospace and defence group, the move would reinforce its diversification beyond its core commercial aircraft operations. The group already has a significant presence in defence and space, but combining its satellite arm with those of Leonardo and Thales [Euronext:HO] would consolidate its position as a global benchmark in secure communications and orbital infrastructure.
Leonardo, Italy’s aerospace and defence champion, would gain scale in a fast-growing market where it has until now been a more marginal player. Thales, meanwhile, would bring deep expertise in electronics and cybersecurity — areas increasingly central to both civil and military satellite applications. Executives familiar with the discussions said the three companies viewed the tie-up as a way to pool resources, reduce duplication and compete with better-funded American rivals.
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