European Space Giants Unite to Challenge SpaceX

Italy's Leonardo, Thales, and Airbus are close to forming a new European satellite manufacturing company to compete with Elon Musk's SpaceX. The deal, however, is subject to regulatory approvals and could be delayed by political and governance issues. An official announcement is expected soon.

Italy's Leonardo, Thales of France, and Airbus are poised to announce a landmark deal to create a new European satellite manufacturer. This move aims to consolidate their fragmentary operations and mount a challenge against Elon Musk's SpaceX.

Despite the completion of a framework agreement, approvals from company boards and regulators are still pending. The merger, designed to control loss-making activities, is fueled by the competitive pressure from cheaper satellites in low Earth orbit, areas dominated by tech giants like SpaceX.

Leonardo faces the task of maintaining Italy's interests amidst these international negotiations. Governance challenges remain a potential stumbling block, with the roles of key executives such as the chairperson, CEO, and CFO yet to be finalized.

(With inputs from agencies.)