The partnership aims to leverage each company's strengths to foster growth, innovation, and competitiveness, countering the dominance of SpaceX and Chinese satellite providers.

Europe's leading aerospace companies Airbus, Thales, and Leonardo are merging their space divisions to create a new entity aimed at boosting Europe's strategic autonomy in space and competing with global giants like SpaceX.

This agreement marks a significant milestone after over a year of discussions, signaling Europe's strategic effort to consolidate its space industry and enhance competitiveness.

The new company, named Bromo, is expected to employ around 25,000 people and generate approximately 6.5 billion euros in revenue, with operations beginning around 2027.

Bromo will focus on building and servicing telecommunications and navigation satellites to support high-speed networks worldwide, with Airbus holding a 35% stake and Thales and Leonardo each holding 32.5%.

The merger requires regulatory approval and ongoing negotiations with unions, but no immediate job cuts are planned, although long-term reductions may occur.

European industry leaders see this move as crucial for strengthening Europe's position in the global satellite market, despite potential delays from regulatory scrutiny.

The merger is a strategic response to SpaceX's overwhelming presence, driven by the need to regain competitiveness through collaboration and scale.

This initiative is part of Europe's broader effort to develop an alternative to Starlink, which has been vital for Ukraine and other regions but faces geopolitical and operational challenges.

To protect national interests, five regional companies will be established in the UK, France, Italy, Germany, and Spain, similar to the MBDA model, ensuring regional participation and safeguarding jobs.

The deal's final approval hinges on EU competition regulators, who have historically been cautious about such mergers, amid concerns over market concentration.

Despite the 3,000 jobs already cut in the sector, companies emphasize that no immediate layoffs are planned for the new venture, with unions being consulted.