Europe’s biggest aerospace players unite to build a SpaceX rival

European aerospace manufacturers Airbus, Leonardo, and Thales have finalized a deal to combine their space divisions into a new joint business. The entity will be headquartered in France and is intended to create a European rival to SpaceX.

The new, yet-unnamed company will employ approximately 25,000 people. Ownership of the venture will be divided, with Airbus holding a 35 percent stake, while Leonardo and Thales will each hold a 32.5 percent share. Executives aim for the company to serve Europe’s strategic need for “sovereignty” in space. A primary objective is the creation of a competitive alternative to SpaceX’s Starlink communications network. An increased presence in space is also viewed as beneficial for the continent’s security and defense objectives, according to reporting by the Financial Times.

Thales, Leonardo and Airbus have signed a Memorandum of Understanding aimed at creating a leading European player in space.