Europe’s major aerospace and defense companies Airbus, Leonardo, and Thales have signed a memorandum of understanding to merge their space businesses into a new joint venture, marking a significant milestone for Europe’s space industry. The new company, expected to be operational in 2027 pending regulatory approvals, aims to enhance Europe’s strategic autonomy in space by combining satellite manufacturing, space systems, and services, employing around 25,000 people with an anticipated annual revenue of €6.5 billion. Airbus will hold a 35% stake, with Leonardo and Thales each holding 32.5%, under joint control with balanced governance. The merger seeks to create a unified European space champion capable of competing globally, especially against Elon Musk’s SpaceX and its rapidly expanding Starlink network. It intends to accelerate innovation, generate significant cost synergies estimated in the mid triple-digit million-euro range within five years, and serve as a trusted partner for national sovereign space programs. The new entity will pool complementary technologies and focus on telecommunications, navigation, earth observation, science, exploration, and national security, strengthening Europe’s position in the global space market. The announcement was made on October 22, 2025, after months of negotiations among the three firms.