In a bold move to strengthen Europe’s position in the rapidly evolving space industry, three major aerospace giants – Italy’s Leonardo, France’s Thales, and Airbus – are negotiating a groundbreaking joint venture dubbed “Project Bromo.” This proposed alliance aims to create a new European space powerhouse, focusing on satellite manufacturing and associated space activities, as the continent seeks to counter intensifying competition from global players in China and the United States, including disruptors like Elon Musk’s Starlink.
The Vision Behind the Venture
The core objective of Project Bromo is to consolidate the space-related divisions of these companies into a unified entity. This includes Leonardo’s Telespazio unit, Thales Alenia Space (which is already a joint venture between Thales and Leonardo), and Airbus’s space systems business. By pooling resources and expertise, the partnership intends to enhance capabilities in key areas such as telecommunications satellites, earth observation systems, and advanced space exploration technologies. Industry analysts view this as a strategic response to the fragmented nature of Europe’s space sector, which has struggled to keep pace with consolidated efforts elsewhere in the world.
The deal comes at a critical time for the European space industry, which faces mounting pressure from low-cost satellite constellations and innovative private-sector initiatives. A successful merger could position Europe as a more formidable competitor on the global stage, fostering innovation and securing strategic autonomy in space technologies.
Key Details of the Proposed Deal
Negotiations have revealed several pivotal elements of the joint venture:
- Ownership Structure: Under the current framework, Airbus is slated to hold a commanding 50% stake, while Leonardo and Thales would each own 25%. This distribution reflects Airbus’s significant role in the consortium and aims to balance influence among the partners.
- Financial Implications: The combined entity is projected to boast an impressive order book valued at approximately 24 billion euros, with annual revenues estimated at 3.8 billion euros. These figures underscore the scale of the operation and its potential to drive economic growth in the aerospace sector.
- Deal Process: The agreement is structured in two phases. The initial step involves signing a framework agreement to define the broad terms, followed by a detailed closing phase to iron out specifics and complete the transaction.
Current Status and Timeline
As of October 6, 2025, the framework agreement remains unsigned, though discussions are in an advanced stage. Company boards are actively addressing unresolved issues, including governance structures, financial terms, and necessary regulatory approvals. Finalization is anticipated within “some weeks,” with talks having progressed steadily since early 2025. There is optimism that the initial framework could be secured by year’s end, paving the way for the full venture to materialize.
The involvement of the French and Italian governments adds another layer of oversight, given the deal’s implications for national security and economic interests. Both nations are closely monitoring the process to ensure it aligns with broader European strategic goals, such as maintaining technological sovereignty amid geopolitical tensions.
Broader Implications for the Space Industry
If realized, Project Bromo could reshape the landscape of European space endeavors, promoting collaboration over competition among key players. It represents a proactive step toward addressing challenges like supply chain vulnerabilities, technological advancements, and the rise of mega-constellations in low-Earth orbit. However, success will depend on navigating complex regulatory hurdles, including antitrust reviews from European authorities, and achieving seamless integration of the involved divisions.
As the space race intensifies, this joint venture highlights Europe’s determination to not only participate but lead in the next era of space exploration and commercialization. Stakeholders worldwide will be watching closely as Project Bromo unfolds.
