New Satellite Venture: Europe Unites Against SpaceX

Italy's Leonardo, France's Thales, and Airbus are nearing a deal to form a new European satellite manufacturer. This venture aims to consolidate their loss-making operations and compete with SpaceX. Despite unresolved issues, an announcement may come soon, inspired by past collaborative ventures like the MBDA missile maker.

In a significant move, Italy's Leonardo is on the verge of finalizing a transformative partnership with France's Thales and rival company Airbus to establish a new European satellite manufacturing entity. The board meeting on Tuesday, aimed at consolidating loss-making activities into one venture, signals a strategic alignment to counteract growing competition from SpaceX, according to informed insiders.

The finalization of the agreement, while reportedly in its advanced stages, must overcome complex negotiations surrounding power balance, company valuations, and anti-trust regulations. Ribbed by a political crisis in France, there remains uncertainty about immediate sign-off, and none of the companies involved have issued a public statement regarding the progress.

Originally reported by Reuters, the nascent framework awaits both board and regulatory approvals, with talks drawing parallels to the historical collaboration in aerospace exemplified by the MBDA missile initiative. Analysts suggest the onus will be on addressing governance concerns, often a stumbling block for European aerospace collaborations.

(With inputs from agencies.)