European Aerospace Giants to Decide on Space Division Merger by July

Three prominent European aerospace companies, Leonardo, Airbus Defence and Space, and Thales Alenia Space, are poised to make a crucial decision by the end of July 2025 regarding a potential merger of their space divisions. This strategic initiative, often referred to as Project Bromo, has been under discussion since last year and aims to consolidate their operations to better compete with industry leaders like SpaceX in the satellite market.

During a press conference at the Paris Air Show on June 17, 2025, Roberto Cingolani, CEO of Leonardo, emphasized the importance of this decision, stating, "By the end of July, we would like to have a global go/no-go about the feasibility of the initiative." This assessment will consider various factors, including antitrust issues, financial due diligence, and the potential for value creation that such a merger could yield. Cingolani further remarked, "I like to say that one plus one plus one should be bigger than three, otherwise we don’t do it."

The discussions are driven by the belief that a unified entity could achieve greater operational scale and speed. Guillaume Faury, CEO of Airbus, echoed this sentiment in a February investor call, drawing parallels to the successful formation of MBDA, a European missile manufacturer, which resulted from combining business units across three aerospace companies nearly 25 years ago. Faury stated, "What we expect is to gain scale and speed by consolidating the business."

As the companies approach their July deadline, they currently have a team of 90 personnel examining the feasibility of the merger. This includes accessing financial data and aligning on the valuation of their respective assets. Cingolani noted, “We see if we have the same opinion about the value of the assets we contribute to the company,” highlighting the collaborative effort required for a successful merger.

Alain Fauré, head of space systems at Airbus Defence and Space, articulated the overarching goal of this consolidation: to create a "European champion" in the space sector. He pointed out that Europe currently suffers from fragmentation in both projects and market players, which dilutes its competitive edge. Fauré stated, "The combination of the companies’ space units would provide a critical mass that Europe currently lacks. It can create synergy, allowing us to leverage the strength of the three companies."

However, the path to a combined vehicle is fraught with regulatory challenges. Should the companies decide to move forward, they will still face an extensive antitrust review process that could take up to two years before any formal operations can commence. Cingolani acknowledged the potential delays, stating, "We have a couple of years waiting for the antitrust to create the company."

In conclusion, the impending decision on the merger of these European aerospace giants could reshape the landscape of the space industry, providing a more formidable competitor against established players like SpaceX. As July approaches, stakeholders across the sector will be closely monitoring the outcome of this critical initiative, which promises to alter the dynamics of the European space market significantly.