European manufacturers are working in order. The European Aerospace Groups Leonardo, Thales and Airbus have redoubled their efforts to try to combine their satellite activities in a joint company that would be valued at 10 billion euros and hope to conclude an initial agreement in the coming weeks, the sources close to the archive told Reuters.
As part of the “Bromo Project”, called for an Indonesian volcano, the three companies plan to create a European satellite manufacturing company capable of competing with the Chinese and American rivals, including Elon Musk Starlink Starlink.
The conversations resumed after a difficult period during the summer, particularly due to the governance agreement, three sources said, according to which a memorandum of understanding could be signed at the end of the month.
The exact shares of each company in the joint company are still under discussion.
A Leonardo spokesman refused to comment. Airbus referred to a statement by Director General Guillaume Faury, who said at the beginning of the week that companies were approaching an agreement and discussed with European governments on this issue, believing that the project is “on the way.” Thales was more prudent: “No agreement has been reached at this stage. We continue our work. Any other comment would be premature.”
Strengthen the European segment
Political signals have been encouraging so far, but the details of property and governance must be approved by the nations in question, the sources have added. If it is born, the joint business must include entities dedicated to the protection of sensitive national interests.
Several attempts to create a European satellite champion have failed in the last decade due in particular to concerns related to national competition and rivalries.
But the spectacular Starlink boom and the evolution of the market towards cheaper satellites and a low orbit have increased pressure on the main European suppliers, which must group their assets under penalty of being expelled from the market.
The European Union at the same time seeks to strengthen its sovereign abilities to be able to deal with geopolitical risks and inflection of US politics.
The three companies have shareholders and analysts of the minority government believe that any agreement on sensitive assets and technologies would require political approval.
Source: BFM TV
