Airbus,
Leonardo and
Thales have signed a Memorandum of Understanding (MoU) to combine their respective space activities into a single, unified company. The move marks a significant step toward bolstering Europe’s strategic autonomy in space — a sector that underpins vital infrastructure and services across telecommunications, navigation, earth observation, science, exploration and defence.
The new entity will bring together a comprehensive portfolio of technologies and end-to-end solutions, excluding launchers, with the aim of accelerating innovation and creating a resilient European space player capable of competing globally. By pooling their assets, the three companies intend to foster innovation and strengthen investment in future space products and services, leveraging their complementary expertise and scale.
The combination is expected to generate triple-digit-million-euro synergies in annual operating income within five years of closing, with associated costs aligned to industry benchmarks. The expanded portfolio is anticipated to unlock incremental revenues and enhance competitiveness on the global stage, while also enabling the development of new programmes to broaden market positioning. Operational synergies in engineering, manufacturing and project management are expected to drive long-term efficiency and value creation.
Airbus will contribute its Space Systems and Space Digital businesses from Airbus Defence and Space. Leonardo will bring its Space Division, including its stakes in Telespazio and Thales Alenia Space. Thales will contribute its shares in Thales Alenia Space, Telespazio and Thales SESO. The combined entity will employ around 25,000 people across Europe, with a projected annual turnover of 6.5 billion euros by the end of 2024 and an order backlog covering more than three years of forecasted sales. Ownership will be split between the three parent companies, with Airbus holding 35%, and Leonardo and Thales each holding 32.5%. The company will operate under joint control, with a balanced governance structure.
Strengthen the European space ecosystemThe new venture aims to drive technological progress through joint R&D, enhance operational efficiency via economies of scale, and increase Europe’s competitiveness in the global space market. It will also lead innovative programmes to meet evolving sovereign and military needs, provide integrated solutions across major space domains, and strengthen the European space ecosystem by offering greater stability and predictability to suppliers. Employees will benefit from broader technical capabilities and enhanced career opportunities within a multinational framework.
Aibus CEO Guillaume Faury, Roberto Cingolani, CEO and general manager of Leonardo, and Patrice Caine, chairman and CEO of Thales, issued a joint statement: “This proposed new company marks a pivotal milestone for Europe’s space industry. It embodies our shared vision to build a stronger and more competitive European presence in an increasingly dynamic global space market. By pooling our talent, resources, expertise and R&D capabilities, we aim to generate growth, accelerate innovation and deliver greater value to our customers and stakeholders.
“This partnership aligns with the ambitions of European governments to strengthen their industrial and technological assets, ensuring Europe’s autonomy across the strategic space domain and its many applications. It offers employees the opportunity to be at the heart of this ambitious initiative, while benefiting from enhanced career prospects and the collective strength of the three industry leaders.”
Employee representatives from all three companies will be informed and consulted in accordance with national laws and collective agreements. Completion of the transaction remains subject to regulatory approvals and customary conditions, with the new company expected to be operational by 2027.