The European space giant formed by Airbus, Leonardo, and Thales could already face a legal battle as it emerges.
In a conference call on May 7 regarding Ohb’s third-quarter financial results, the German satellite manufacturer’s CEO Marco Fuchs stated that he would consider legal action if the EU antitrust authorities approved the merger of the satellite divisions of Airbus, Thales, and Leonardo.
Last October 23, Airbus, Leonardo, and Thales signed a Memorandum of Understanding with the aim of unifying their respective space activities into a new company, code-named Project Bromo. The three companies claim that the operation would create a stronger European player, capable of competing with Elon Musk’s SpaceX and Chinese rivals.
However, Ohb, one of the few independent satellite manufacturers in Europe, fears that the deal could weaken competition on the continent, reports Reuters.
All the details.
THE POSITION OF THE GERMAN OHB
“We express our concerns because the operation impacts our supply chain,” Ohb CEO Fuchs told Reuters, describing the merger as “rather a market disruption.”
When asked if Ohb would consider legal recourse if the European Commission approved the deal, Fuchs replied: “Yes.”
This is not the first time the German aerospace company has spoken out about the future newco, as early in 2025 it had already expressed readiness to raise concerns with EU competition authorities about the potential link between the two largest European satellite manufacturers.
PROJECT BROMO
For some time, losses and competition from SpaceX’s Starlink have pushed Airbus and Thales Alenia Space to consider merging their satellite activities into a single company, aiming to compete with American and Chinese giants. Leonardo, already an ally of Thales in the joint ventures Thales Alenia Space (33%) and Telespazio (67%), has also joined this context. So far, Europe has struggled to respond to rapid changes in satellite demand, largely driven by the expansion of SpaceX’s Starlink network in low Earth orbit, recently noted by the Financial Times.
With this alliance, the three companies aim to strengthen Europe’s strategic autonomy in space. Guillaume Faury, CEO of Airbus, Roberto Cingolani, outgoing CEO of Leonardo, and Patrice Caine, CEO of Thales, have described it as “a fundamental step towards establishing the new company for the development of the European space industry.”
The new company will be operational in 2027, after completing the necessary regulatory approvals and conditions for closing, including the green light from the EU Antitrust.
REGULATORY ISSUES
The central issue for regulators will likely be whether the new company will primarily use its size to compete globally, as its backers claim, or whether it will strengthen their position in Europe, explains Reuters.
For his part, the head of Ohb rejected comparisons with Chinese competitors, stating that Europe does not purchase satellites from China.
