Airbus, Leonardo and Thales have signed an MoU aimed at combining their respective space activities into a new company.

The three companies aim to strengthen Europe’s strategic autonomy in space. This new company also intends to develop and implement national sovereign space programmes.

Airbus will contribute with its Space Systems and Space Digital businesses, coming from Airbus Defence and Space, while Leonardo will contribute with its Space Division, including its shares in Telespazio and Thales Alenia Space. Thales will mainly contribute with its shares in Thales Alenia Space, Telespazio, and Thales SESO.

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The combined entity will employ around 25,000 people across Europe. The newco has an order backlog from its foundation companies  representing more than three years of projected sales and a pro-forma turnover of around €6.4bn, based on 2024 accounts.

Ownership of the new company will be shared among the parent companies, with Airbus, Leonardo and Thales owning respectively 35%, 32.5% and 32.5% stakes. It will operate under joint control, with a balanced governance structure among shareholders.

Guillaume Faury, Chief Executive Officer of Airbus, Roberto Cingolani, Chief Executive Officer and General Manager of Leonardo and Patrice Caine, Chairman & Chief Executive Officer of Thales, declared: “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.”

Completion of the transaction is subject to customary conditions including regulatory clearances, with the new company expected to be operational in 2027.