European aerospace giants Leonardo, Thales, and Airbus are advancing toward an initial agreement to merge their satellite divisions under “Project Bromo”. The strategic initiative seeks to create a European satellite powerhouse capable of competing with global players such as Elon Musk’s Starlink and China’s satellite networks.
Project Bromo: A Strategic Alliance
The venture is envisioned as a joint entity, potentially equally owned by the three companies. By consolidating satellite manufacturing capabilities, the collaboration aims to:
- Foster innovation across satellite technologies.
- Optimize resources and reduce duplication.
- Bolster Europe’s competitiveness in the global space sector.
The proposed headquarters is in Toulouse, France, with a structure expected to mirror the successful MBDA missile consortium, co-owned by Airbus, Leonardo, and BAE Systems.
Progress and Challenges
Airbus Defence and Space CEO Michael Schoellhorn stated that the companies are “on the right track,” although key issues such as governance structures and asset valuation remain to be resolved. The merger process is planned in two phases: a framework agreement followed by a closing phase, with the initial agreement potentially completed by the end of 2025.
Earlier negotiations faced setbacks over governance and valuation disputes, but discussions have regained momentum. A memorandum of understanding could be signed by September 2025. Political backing from France and Italy has been positive, though government approvals will be necessary due to the strategic nature of the assets involved.
Implications for the European Space Industry
If executed successfully, Project Bromo is expected to significantly strengthen Europe’s satellite capabilities by:
- Pooling expertise, technology, and resources across three leading aerospace firms.
- Enhancing innovation, security, and production efficiency.
- Establishing a European “space champion” to compete with established global satellite networks.
However, regulatory and political challenges remain, including concerns over potential monopolistic behavior and its effects on intra-European competition.
Looking Ahead
Project Bromo represents a major step in consolidating Europe’s satellite industry, ensuring the continent maintains a strong and influential presence in the rapidly expanding space sector. If successful, the initiative could redefine Europe’s role in global satellite technology and position it as a serious competitor in the era of mega-constellations and advanced space infrastructure.
