Europe’s Satellite Champion vs. Starlink – Diepresse.com
European Satellite Merger Talks Progress, Agreement Expected by End of September
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Deal Aims to Bolster European Strategic Autonomy
Talks to merge the satellite operations of Airbus, Leonardo, and Thales are nearing completion, with an agreement anticipated by the end of September, though the timeline remains subject to change. The potential deal aims to create a european champion in the space industry, strengthening the continent’s strategic autonomy amid geopolitical tensions and evolving U.S. policy.
Negotiations resumed after stalling in July due to disagreements regarding corporate management and valuation, according to three sources familiar with the discussions.Airbus CEO Guillaume Faury indicated earlier this week that the companies were close to a resolution, stating they had “started talking to everyone involved and obtaining the approval of the competition authorities” during a press briefing in Washington. Reuters reported on September 11, 2023, that the deal is valued at around 7 billion euros ($7.5 billion).
Leonardo declined to comment, while Airbus referred inquiries to Faury’s statement. Thales confirmed that no agreement had been reached but affirmed the project’s continued progress.
Pressure from Low Earth Orbit Spurs Consolidation
The drive for consolidation within the European space industry is partly a response to increasing competition from companies offering cheaper, smaller satellites for low earth orbit (LEO) applications. Traditionally, European manufacturers have focused on more complex satellites in geostationary orbit (GEO). The rise of LEO constellations, spearheaded by companies like SpaceX’s Starlink, has put pressure on established players to adapt and innovate.
The reorganization requires approval from state shareholders in all three companies and will be subject to scrutiny from competition authorities.This is due to the meaningful government ownership stakes in Airbus, Leonardo, and Thales.
Insiders suggest the final share distribution and management structure are still being negotiated, but an almost equal division between the three partners is likely. The companies are reportedly considering the rocket manufacturer MBDA – a joint venture between Airbus, Leonardo, and BAE Systems – as a potential model for the new entity. Reuters also reported in June that existing joint ventures between Leonardo and Thales, namely Thales Alenia space and Telespazio, would be integrated into the new structure.
Thales Alenia Space is a major player in satellite manufacturing, while Telespazio provides space services. Integrating thes entities would create a more thorough offering, spanning the entire satellite value chain.