Europe’s top space players — Airbus AIR 4.98%↑, Leonardo and Thales — have signed a memorandum of understanding (MoU) to merge their space activities and create a new company aimed at bolstering Europe’s strategic autonomy in satellite manufacturing, services and GNSS.

According to the companies, and after clearing regulatory hurdles, the merged business would be operational by 2027, employ approximately 25,000 people and generate pro-forma revenue of around €6.5 billion annually (about $7.53 billion) with Airbus holding a 35 percent stake and Leonardo and Thales each 32.5 percent.

The planned unnamed entity would combine assets in satellite infrastructure, navigation and space-based services — a move directly tied to efforts around systems such as the Galileo global navigation satellite system and Europe’s broader positioning, navigation and timing (PNT) ambitions.

By combining their GNSS-, Earth-observation and satellite-services capabilities, the three firms intend to address rising geopolitical and commercial pressures — including competition from U.S. entrants and the need for secure European PNT infrastructure in contested environments.

Other facts about the MOU:

• Airbus will contribute with its Space Systems and Space Digital businesses, coming from Airbus Defence and Space.
• Leonardo will contribute with its Space Division, including its shares in Telespazio and Thales Alenia Space.
• Thales will mainly contribute with its shares in Thales Alenia Space, Telespazio, and Thales SESO.