European Satellite Merger: Leonardo, Airbus, Thales Aim to Compete with SpaceX's Starlink

Framework Deal for Satellite Merger

• 🤝 European aerospace groups Leonardo, Airbus, and Thales have reportedly reached a framework deal to merge their satellite businesses.
• 🗓️ Leonardo is expected to hold an extraordinary board meeting to discuss the merger details.
• 💬 All three companies have declined to comment on the ongoing negotiations.

Project Bromo: Aims and Challenges

• 🚀 The proposed joint venture, codenamed Project Bromo, aims to create a new satellite manufacturing company.
• 💰 The deal is valued at approximately 11.66 billion and has been in talks for over a year.
• ⚠️ Previous discussions faced difficulties regarding governance and valuation.

Market Competition and EU Scrutiny

• 🛰️ The merger is driven by the need to compete on a larger scale with rivals like Elon Musk's SpaceX and its Starlink service.
• 📈 The dramatic rise of Starlink and the trend towards cheaper satellites have increased pressure on European companies to combine assets.
• 🇪🇺 A key remaining hurdle for the merger is securing approval from the European Commission's competition review.