The chief executives of Airbus and Leonardo have urged European regulators to approve their proposed pan-European space merger with Thales, asserting that consolidation is necessary for the continent to compete with global rivals such as SpaceX. The merger, codenamed Bromo and agreed upon in October last year, would integrate satellite manufacturing and space systems activities from France, Italy, and other European partners.
Lorenzo Mariani, Leonardo’s chief executive, emphasized that without cooperation, European space industries would struggle to achieve the critical mass and capabilities required to become global contenders alongside American and other international players. Airbus CEO Guillaume Faury echoed this view, stressing that while Europe possesses the skills and technologies, it lacks the scale necessary to compete. Faury highlighted that investment levels in the US and China far exceed those in Europe, with competitors like SpaceX driving rapid growth in satellite demand, notably through the expansion of the Starlink constellation.
The merger has attracted criticism from other European space companies, including Germany’s OHB and Spain’s Indra Space, which have voiced concerns that the deal could reduce competition in the European satellite sector. OHB has warned it may pursue legal action against the merger, arguing that it risks consolidating excessive market power in the hands of a few players.
The companies involved are preparing to submit a formal filing to the European Commission, which is responsible for antitrust regulation in the bloc. The merger comes at a time when the Commission has introduced new merger guidelines that give greater weight to the benefits of corporate scale in the context of global competition. Brussels views the deal as a key test case for this updated policy framework.
European policymakers have also signaled increased support for the merger in line with broader strategic goals. European space commissioner Andrius Kubilius publicly endorsed the consolidation last month, linking it to the EU’s ambition to boost sovereignty in space by reducing reliance on US technologies and building indigenous satellite constellations for reconnaissance, intelligence, and communications.
The merger represents a response to the mounting pressure European companies face from US and Chinese space firms. European satellite manufacturers have found it challenging to adapt to the market transformations spurred by new technologies and business models exemplified by SpaceX. Both Mariani and Faury expressed optimism about securing regulatory approval, highlighting the merger as a crucial step to sustain Europe’s presence and relevance in the rapidly evolving space sector.
Without consolidation, Faury warned, Europe risks falling behind in the global space race, potentially being relegated from the “Champions League to lower leagues.” By joining forces, the companies aim to create a competitive entity capable of matching the scale and investment power of rivals outside Europe.