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European Aerospace Leaders Join Forces in Bid to Challenge SpaceX

By  |  September 10, 2025

A trio of major European aerospace firms are advancing talks to create a unified space and satellite business in an effort to counter SpaceX’s market dominance, according to Bloomberg. Airbus SE, Thales SA, and Italy’s Leonardo SpA are in discussions over a three-way merger of their space units, with a potential announcement expected as early as this month. While the timeline could shift, sources familiar with the matter told Bloomberg that the companies remain committed to pushing the project forward.

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    Airbus CEO Guillaume Faury acknowledged the progress during a recent interview in Washington, where he confirmed that due diligence, stakeholder notifications, and antitrust preparations were already underway. “We’re on the way,” Faury said, adding that the partners are “still very committed to the project,” per Bloomberg.

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    Leonardo CEO Roberto Cingolani had previously indicated in June that clarity on the venture was expected by the end of July. Although no official decision was announced at that time, insiders cited by Bloomberg noted that despite the complexities, there is strong determination among the parties to proceed. Leonardo has declined further comment, while Thales has not issued any statement.

    Related: SpaceX to Acquire $17 Billion in Spectrum Assets from EchoStar

    The proposed alliance is seen as a potential model akin to MBDA, the European missile manufacturer jointly owned by Airbus, BAE Systems, and Leonardo. Still, according to Bloomberg, the companies face significant hurdles before they can transform their combined businesses into a competitive force against American and Chinese rivals. Airbus CFO Thomas Toepfer has suggested that each partner is likely to hold a minority stake in the new venture, emphasizing that no single company seeks majority control.

    The momentum behind the merger reflects broader geopolitical and economic pressures. Russia’s invasion of Ukraine has underscored the strategic importance of satellite surveillance, while U.S. demands for greater European defense spending have pushed the continent to pursue stronger security capabilities. NATO members agreed in June to target higher defense spending levels, an effort that complements the push for a consolidated European space presence.

    If successful, the merger could finally bring to life a long-discussed vision of a European “space champion.” For now, the initiative signals Europe’s determination to close the widening gap with SpaceX and bolster its strategic independence in orbit.

    Source: Bloomberg