European Space Giants Unite Against SpaceX Challenge

Italy's Leonardo, Thales, and Airbus are on the verge of forming a new European satellite manufacturer, aiming to consolidate loss-making activities and compete against SpaceX. The deal's success hinges on finalizing governance structures amid political complexities, and an announcement could come as early as Wednesday.

Italy's aerospace giant Leonardo convened with partners Thales and Airbus to finalize a critical agreement on a new European satellite manufacturer. This strategic merger aims to consolidate loss-prone sectors to challenge advancements by SpaceX, sources close to the discussion revealed.

After a year of complex negotiations over power dynamics, valuations, anti-trust considerations, and political issues in France, the deal's finalization awaits possible last-minute hindrances. A formal announcement could be expected as early as Wednesday, though timing remains uncertain.

Industry analysts observe that the consolidation attempts to emulate the collaborative success of MBDA, a missile-making joint venture established by France, Italy, and Britain in 2001. The anticipated announcement merits attention, given its implications for European aerospace governance and geopolitical interests.

(With inputs from agencies.)