Europe's big three aerospace manufacturers combine their space divisions to create a rival to SpaceX

Europe's big three aerospace manufacturers are combining their space divisions to create a joint business. This "leading European player in space" could be a real rival to America's SpaceX, according to reporting by Financial Times.

The companies Airbus, Leonardo and Thales have finalized this deal. The new unnamed entity will be based in France and will employ around 25,000 people. Airbus will own 35 percent, while the other two companies will each own 32.5 percent.

Executives are hoping this company will better serve Europe's need for "sovereignty" in space and help it create a rival to SpaceX's Starlink communications network. Increasing a presence in space is also seen as a good thing for security and defense.

"This proposed new company marks a pivotal milestone for Europe’s space industry. It embodies our shared vision to build a stronger and more competitive European presence in an increasingly dynamic global space market," the companies wrote in a joint statement. "By pooling our talent, resources, expertise and R&D capabilities, we aim to generate growth, accelerate innovation and deliver greater value to our customers and stakeholders."

This isn't just bluster. Thales and Airbus have long been rivals in the satellite market, but it looks like they are friends now. Leonardo is known for space systems and services. Combining all three could actually give SpaceX a run for its money, but we will have to wait and see.

There are no planned site closures, as the companies say that each home country will keep its existing capabilities. This will be a standalone company, so think of it as an extremely well-financed startup. The first task for the upstart? Reporting indicates it'll be to find more efficient ways to develop and manufacture satellites.

Discussions about this merger have been going on since 2019. Regulators still have to approve the deal, though the companies say they expect the new entity will be operational by 2027.

As for SpaceX, the company is currently developing a next-gen version of its Starship super-heavy lift vehicle. It's also slowly planning a manned mission to the moon, but that recently hit a snag that could mandate a lengthy delay.This article originally appeared on Engadget at https://www.engadget.com/science/space/europes-big-three-aerospace-manufacturers-combine-their-space-divisions-to-create-a-rival-to-spacex-153424228.html?src=rss