European Aerospace Firms Merge Satellite Operations to Compete with Starlink

Satellite Manufacturing Merger

• 🤝 European aerospace groups have reached an initial agreement to combine their loss-making satellite manufacturing activities.
• 🎯 The deal aims to create a new venture starting from 2027, designed to counter the growth of rivals like Elon Musk's Starlink.
• ⚖️ The venture is subject to approval by European regulators, who have previously opposed similar consolidations.

New Entity and Financials

• 🧑‍🚀 The unnamed new entity will employ 25,000 people across Europe.
• 💰 Annual revenues are projected to exceed 7.5 billion based on the previous year's figures.
• 📊 Airbus will hold a 35% stake, while Thales and Leonardo will each hold 32.5%, operating under joint control with balanced governance.

Market Shift and Competition

• 🛰️ Historically, European companies competed in building complex geostationary orbit spacecraft.
• 📉 They have been impacted by the emergence of cheap, small satellites operating in low Earth orbit.