Insider Brief:
- According to industry sources, Airbus and Thales are in early discussions about a potential collaboration on their satellite activities to address challenges from new competitors in the space sector.
- These exploratory talks, supported by the French government, follow a similar attempt at a collaboration in 2019 that faced potential anti-trust issues. France’s competition authority stated it is too early to comment on the current discussions.
- Any potential alliance between Airbus and Thales would require approval from both EU and national authorities, including those of France, Italy, and Germany.
Airbus and Thales are reportedly in early discussions about a potential collaboration on their satellite activities. According to industry sources, the goal is to address challenges from new competitors in the space sector.
Both companies have historically dominated the European telecommunications, navigation, and surveillance satellite market. However, they face increasing pressure from companies like SpaceX, which deploys large constellations of low Earth orbit satellites.
These exploratory talks, supported by the French government, follow a similar attempt at a collaboration in 2019 that faced potential anti-trust issues. France’s competition authority stated it is too early to comment on the current discussions.
Airbus has recently struggled with its space services business, leading to significant financial charges. CEO Guillaume Faury mentioned that the company is exploring all strategic options for its space division, including potential mergers.
In 2023, Airbus’s Space Systems generated 20% of its total Defence & Space revenue, amounting to 11.5 billion euros. Thales Alenia Space, which Italian company, Leonardo holds a 33% stake, reported sales of 2.2 billion euros for the same period.
Any potential alliance between Airbus and Thales would require approval from both EU and national authorities, including those of France, Italy, and Germany. The balance of interests, particularly the Franco-German relationship within Airbus, will be crucial.
While generally open to foreign tie-ups, Italy’s government has shown a protective stance towards its strategic assets. This was evident when Prime Minister Giorgia Meloni used anti-takeover powers to block and later clear deals involving Italian companies.
Broadening the alliance beyond France might improve the chances of gaining anti-trust approval. An Italian industry source noted that such collaboration aims to strengthen the sector against competition from players like Starlink.
The talks between Airbus and Thales represent an effort to consolidate and enhance their positions in the competitive space market. The ultimate goal is to adapt to the evolving landscape, a growing trend in the space tech industry.
Image credit: Airbus
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