(Sharecast News) - European aerospace and defence companies Airbus, Leonardo and Thales have joined forces to combine their space businesses in a new entity to take on SpaceX of the US.
The trio on Thursday signed a memorandum of understanding to create a new operation pledging to deliver "mid-triple-digit millions" of euros in savings and synergies, although figures were not given on potential job losses.

By joining forces, Airbus, Thales and Leonardo said they aimed to "strengthen Europe's strategic autonomy in space" and "serve as the trusted partner for developing and implementing national sovereign space programmes".

"This new company will pool, build and develop a comprehensive portfolio of complementary technologies and end-to-end solutions, from space infrastructure to services (excluding space launchers)," the companies said in a joint statement.

"It will accelerate innovation in this strategic market, in order to create a unified, integrated and resilient European space player, with the critical mass to compete globally and grow on the export markets."

The new company will combine businesses from satellite manufacturing, and space systems, components and services, employing about 25,000 people with an annual turnover of about €6.5bn and order backlog of more than three years of projected sales.

Ownership will be shared among the parent companies, with Airbus, Leonardo and Thales holding 35%, 32.5% and 32.5% respectively.

Regulators will still have to approve the deal, and the companies said the new entity could be operational by 2027.

Reporting by Frank Prenesti for Sharecast.com

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