Europe has taken a decisive step toward creating its own satellite communications powerhouse to rival Elon Musk’s Starlink, as Airbus, Thales, and Leonardo agreed on Thursday to merge their space assets into a new joint venture based in Toulouse, set to launch operations in 2027.
Dubbed Project Bromo, the alliance marks the largest European aerospace merger since MBDA in 2001 and aims to bolster Europe’s technological sovereignty in an increasingly competitive orbital communications race. The new entity will employ 25,000 people, generate €6.5 billion in annual revenue, and is projected to deliver hundreds of millions in synergies within five years.
French Finance Minister Roland Lescure hailed the agreement as a move to “strengthen European sovereignty amid global competition,” while Italy’s Industry Minister Adolfo Urso praised it as an effort to build “European champions.” The companies will merge Thales Alenia Space, Telespazio, and various Airbus and Leonardo space divisions into a unified structure, with Airbus holding 35% and Thales and Leonardo each controlling 32.5%.
The partnership arrives as Europe races to keep pace with low Earth orbit satellite networks like Starlink and Amazon’s Kuiper, which have disrupted traditional geostationary satellite markets. Thales CFO Pascal Bouchiat, announcing the company’s quarterly results, acknowledged the challenge ahead but said the deal aligns with the EU’s IRIS² satellite initiative, designed to secure Europe’s communications infrastructure.
While the merger still requires approval from the European Commission, national governments, and unions, analysts at Equita called it a “positive initiative” that could transform a struggling sector into a globally competitive player. The companies pledged to avoid past governance pitfalls—such as rotating leadership or nationality-based appointments—that previously plagued European aerospace collaborations.
The move also signals a renewed European determination to defend its space autonomy as the U.S. and China intensify their orbital investments. If successful, the joint venture could define a new era of continental cooperation in the commercial and defense space sectors.
