Europe’s top space firms, Airbus, Thales, and Leonardo, strike a deal to create a Toulouse-based venture by 2027 to compete with Elon Musk’s Starlink. The new entity will employ 25,000 people, generate 6.5 billion euros in revenue, and seek synergies totaling “mid-triple digit” millions of euros within five years.

The deal, code-named “Project Bromo,” aims to strengthen European sovereignty in the face of global competition. It combines Thales Alenia Space, Telespazio, and various Airbus space and digital businesses. Airbus will hold 35%, while Thales and Leonardo each hold 32.5%. The deal will close in 2027, pending regulatory approval.

French Finance Minister and Italian Industry Minister support the deal, emphasizing the need for European champions to compete globally. The new venture faces intense competition from low Earth orbit satellites, particularly SpaceX’s Starlink network. The deal aims to improve the struggling space industry’s profitability and competitiveness on a global scale.

Analysts view the initiative positively, anticipating improved profitability and global competitiveness. Shareholders face up to two years of negotiations with governments, unions, and the European Commission. The deal could face objections from smaller German satellite maker OHB, with concerns over asset acquisition and anti-trust issues.

Airbus and Thales have cut 3,000 jobs following space losses but are now focused on potential growth opportunities. The new venture aims to balance payments among partners based on the value of the assets contributed. Executives pledge to avoid governance practices that have caused controversies in the European aerospace industry in the past.

Read more at Yahoo Finance: Europe takes aim at Musk’s Starlink with new satellite champion