Tri-Nation Space Alliance: Leonardo, Thales, and Airbus Forge Satellite Partnership

Italy's Leonardo is close to finalizing a deal with Thales and Airbus to form a new European satellite manufacturer. The merger aims to consolidate loss-making activities to compete with entities like SpaceX. The partnership faces potential hurdles, including governance and geopolitical interests from the nations involved.

The board of Italy's Leonardo convened a crucial meeting on Tuesday, eyeing a new satellite partnership with Thales and Airbus. The aim is to consolidate operations and fend off competitors like SpaceX.

Throughout over a year of complex discussions, issues such as power balance and political tensions have caused delays. Though none of the companies have publicly commented, indications hint an announcement could be on the horizon.

The potential merger faces anticipated hurdles in governance and competitive objections, especially from smaller entities. However, the proposed consolidation sets sights on creating a formidable European aerospace presence akin to previous collaborations like the MBDA missiles venture.

(With inputs from agencies.)