In a landmark development for the European industrial automation and aerospace sectors, Airbus, Leonardo, and Thales have officially signed a Memorandum of Understanding (MoU) to create a new company dedicated to satellite manufacturing and integrated space systems. The agreement, published on 23 October 2025, marks a pivotal step toward consolidating Europe’s core competencies in satellite infrastructure, services, and advanced manufacturing, uniquely positioning the continent as a competitive, innovative, and autonomous space ecosystem.

The newly proposed company is set to combine activities from three of Europe’s most prominent industrial and technology groups: Airbus Defence and Space’s Space Systems and Space Digital businesses, Leonardo’s Space Division (including Telespazio and Thales Alenia Space shares), and Thales’ stakes in Thales Alenia Space, Telespazio, and Thales SESO. By integrating these leading portfolios, the consortium aims to deliver comprehensive end-to-end solutions for critical sectors, including telecommunications, global navigation, earth observation, defense, and scientific exploration, excluding space launchers.

One of the core goals driving this merger is Europe’s strategic autonomy. In recent years, the ability to independently design, manufacture, and operate space infrastructure has become increasingly critical, not just for economic development but for national security and geopolitical leverage. The formation of this joint entity is therefore strongly aligned with European Commission policies on technological sovereignty and industrial resilience.

The partnership will result in a merged entity employing approximately 25,000 people across Europe, with a projected annual turnover of about €6.5 billion based on 2024 pro-forma figures. The company’s order backlog already surpasses three years’ worth of forecasted sales, securing long-term stability and growth potential. Ownership will be divided among the parent organizations: Airbus holding 35%, and Leonardo and Thales each retaining a 32.5% stake. This balanced ownership structure is intended to ensure equal governance and long-term commitment from all partners.

From an industrial automation standpoint, the merged company plans to invest heavily in next-generation manufacturing, digital integration, and R&D platforms. By pooling resources, skills, and intellectual property, Airbus, Leonardo, and Thales anticipate generating annual operating synergies in the mid triple-digit million euro range within five years of closing the transaction. Operational improvements are expected in engineering, project management, and manufacturing—particularly through advanced digitization, data-driven process optimization, and system integration. These enhancements will strengthen Europe’s position against international competition and open new export opportunities in the global space market.

Market analysts and industry observers see the move as a catalyst for broader consolidation and capability-building across Europe’s high-tech and automation industries. By reducing fragmentation, the new company will be better equipped to undertake large-scale, complex programs, while also accelerating the commercialization of innovative products and services throughout supply chains. Furthermore, clients—including national governments and institutions—can expect increased reliability, deeper technical expertise, and stronger support for evolving regulatory and global security environments.

The formation of the new company is subject to regulatory approvals and other standard closing conditions, with operational launch targeted for 2027. Stakeholders emphasize that this alliance is designed to both unlock value for shareholders and deliver long-term benefits for customers, employees, and Europe’s future in the digital and industrial automation landscapes.