European Satellite Giants Unite Against SpaceX

Italy's Leonardo, Thales, and Airbus are close to finalizing a deal to create a new European satellite manufacturer. This venture aims to consolidate their loss-making activities to compete with Elon Musk's SpaceX amidst a market shift towards low Earth orbit satellites.

In a pivotal gathering on Tuesday, Italy's Leonardo board reviewed a potential agreement to establish a new European satellite manufacturer with current partner Thales and competitor Airbus, insiders revealed. The companies are engaging in talks to consolidate their loss-making operations in order to compete with market leaders led by Elon Musk's SpaceX.

This collaboration, yet to be officially confirmed, signifies a strategic alliance aimed at addressing challenges such as balancing power, setting valuations, and overcoming anti-trust hurdles. Political tensions in France have further complicated negotiations.

Although board and regulatory approvals are still pending, analysts liken this venture to the precedent set by France, Italy, and Britain's creation of missile maker MBDA. The collaboration marks a significant effort to unify European assets in the increasingly competitive space industry.

(With inputs from agencies.)