European Aerospace Giants Join Forces to Compete with SpaceX

European powerhouses Leonardo, Airbus, and Thales have agreed to merge their satellite businesses to forge a formidable company, aiming to challenge the dominance of Elon Musk's SpaceX. The proposed joint venture, inspired by the MBDA model, faces regulatory scrutiny from the European Commission and could take years to finalize.

In a strategic move to challenge the advancement of Elon Musk's SpaceX, European aerospace leaders Leonardo, Airbus, and Thales have reached a preliminary agreement to merge their satellite industries. According to sources familiar with the development, Leonardo's board is slated to meet on Tuesday to deliberate on the deal's specifics.

The merger seeks to establish a formidable satellite manufacturing entity that mirrors the European MBDA missile enterprise. Despite prolonged discussions spanning more than a year, political and valuation disagreements between France and Italy have hindered progress, exacerbated by a government crisis in Paris.

The joint venture, valued at approximately 10 billion euros, must overcome the hurdle of an anti-trust review by the European Commission to proceed. As space exploration pivots towards cost-effective satellite production, Europe faces pressure to consolidate its assets or face obsolescence in this rapidly evolving market.

(With inputs from agencies.)