European Aerospace Giants Plan $7.1 Billion Satellite Merger to Rival Starlink

Three major European aerospace companies, Airbus, Thales, and Leonardo, have agreed to merge their satellite manufacturing divisions into a single venture named Project Bromo, planned to launch in 2027 pending regulatory approval. This merger aims to consolidate Europe's position in the satellite market and compete against Elon Musk's dominant Starlink constellation, which leads the low Earth orbit broadband segment with over 8,000 satellites. The new company will employ approximately 25,000 people across Europe, generate annual revenues of around €6.5 billion, and operate under joint control with balanced governance, with Airbus holding a 35% stake and Thales and Leonardo each 32.5%. While no immediate job cuts are planned beyond the 3,000 already reduced, the integration faces challenges such as regulatory scrutiny, corporate culture differences, and technological competition in satellite broadband and launch costs. The collaboration follows a model similar to the European missile maker MBDA and aims to secure Europe's autonomy in the strategic space sector amidst evolving market dynamics. The success of this merger will be critical in positioning the new entity as a global rival to Starlink and enhancing European capabilities in satellite broadband, Earth observation, defense, and security services.