Space, satellite merger talks. Here is what Airbus, Thales and Leonardo are discussing
A reorganisation of the European manufacturing industry is at the centre of the discussion, which also took place at the ongoing aerospace show in Farnborough
3' min read
Key points
3' min read
Big manoeuvres in space. A reorganisation of the European manufacturing industry is at the centre of the talks, which also took place at the current aerospace show in Farnborough, between Leonardo and the French groups Thales and Airbus.
Exploratory talks
.The two transalpine companies have started discussions to explore a possible merger of their satellite manufacturing activities, in which they are making losses. The aim is to stop competing with each other and thus try to strengthen themselves.
The Space Alliance between Leonardo and Thales
Leonardo has a Space Alliance with Thales, through two joint ventures. One, Thales Alenia Space (Tas), produces satellites, but Leonardo has only 33 per cent, the 67 per cent majority share is held by its French partner Thales. The other joint venture, Telespazio, makes satellite services, Leonardo holds 67 per cent, Thales 33 per cent. Leonardo is party to talks with Airbus and Thales to discuss the fate of Tas.
What we are talking about
."All three companies are talking to each other. It is not easy to create bigger national champions in this field. We are talking together about what the future could look like,' said Franco Ongaro, head of Leonardo's space division, during a press presentation of the new division.
The risks for Leonardo
.A possible merger of the activities of the two Frenchmen could put Leonardo in a corner, because the size of the other two is larger. Airbus has a turnover of around €2.7 billion in the sector, but is also the biggest loser, announcing 900 million losses in the first half of this year. Thales controls 67% of the satellite joint venture, Tas, which has 2.2 billion in revenues in 2023.
