Airbus, Thales and Leonardo have reached a preliminary agreement to create a new entity in the field of satellites, starting in 2027, to counter rivals such as Starlink.

European aerospace groups Airbus, Thales, and Leonardo have announced a preliminary agreement to merge their unprofitable satellite manufacturing activities in an effort to face increasing competition from Starlink, SpaceX's satellite internet network.

The new entity, which will be created starting in 2027, will employ 25,000 people and generate annual revenues of at least 6.5 billion euros. Airbus will hold 35% of the structure, while Thales and Leonardo will each hold 32.5%. The merger aims to ensure Europe's autonomy in the space sector and will bring together various manufacturing activities and services of the involved companies. Negotiations began last year and were influenced by governance and valuation-related obstacles, but the agreement was salvaged following intense discussions.