Three leading aerospace companies from Europe are advancing plans to merge their satellite divisions in a transaction valued at 10 billion euros, as the region works to boost its competitive position against expanding threats from American and Chinese space enterprises.
A senior European Space Agency executive stated Thursday that consolidation may be essential for European businesses to achieve the necessary size for global competition, though excessive concentration might restrict customer choices. These remarks were made as Airbus, Italy’s Leonardo, and France’s Thales pursue discussions about uniting their space-based operations.
“Having only one in the future is not too helpful,” said Rolf Densing, who runs operations at the European Space Agency. “On the other hand, they need a critical mass of business, which I perfectly understand.”
These three corporations, as reported by Reuters, are the sole European entities that manufacture complete space systems rather than separate components. Their planned collaboration, known as “Project Bromo,” seeks to establish a production giant capable of confronting rivals such as Elon Musk’s Starlink constellation and Chinese space enterprises.
Michael Schoellhorn, who heads Airbus’ defense and space operations, informed an Italian publication Sunday that the firms might finalize their initial agreement before 2025 concludes. He clarified that transactions of this magnitude usually occur in two phases – initially, a fundamental framework deal, followed by steps toward final completion.
“We’re on the right track, but several issues still need to be clarified before taking such a major step,” Schoellhorn said in his interview with Il Corriere della Sera. He added that he believes the initial signing could happen sometime in 2025.
European firms struggle against US and Chinese competition
The planned $11.68 billion collaboration emerges as European space enterprises face challenges keeping up with rapidly growing American and Chinese competitors. SpaceX’s Starlink has deployed thousands of satellites for worldwide internet service, while Chinese corporations continue expanding their space operations.
The European Space Agency functions as Europe’s primary satellite purchaser, and its perspectives will probably influence European Commission officials who must approve any consolidation. The Commission holds authority to prevent deals it deems damaging to competition.
Densing emphasized that Europe must decrease its reliance on other nations for space operations.
Presently, European astronauts depend on foreign allies to reach orbit, a circumstance he described as troublesome given shifting international relationships.
“Former good partners are now in a war,” Densing noted. “And NASA is probably today not what it used to be a couple of years ago.” This also underlines Trump’s plan to cut 6 billion from NASA’s budget as reported by Cryptopoliton previously.
The expanding military significance of space technology has intensified the need for independence, according to Densing. “I’m convinced that the future of defense is in space, or at least that space plays a major role in this,” he said.
European regulators back consolidation in space sector
This year, European authorities demonstrated backing for space sector consolidation. In June, the European Commission cleared SES’s $3.1 billion acquisition of competitor Intelsat without restrictions. The Luxembourg-headquartered firm’s purchase establishes another significant European entity built to compete with SpaceX’s Starlink and Amazon’s upcoming Project Kuiper satellite constellation.
SES becomes part of additional European satellite enterprises pursuing greater scale to more effectively compete with American corporations that have aggressively entered space-based internet and communications markets.
The consolidation talks underscore Europe’s wider challenge to stay competitive in the quickly evolving space sector, where American private enterprises and Chinese government-supported companies keep expanding their international presence.
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This articles is written by : Nermeen Nabil Khear Abdelmalak
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