Headlines
European Space Agency warns against monopolies as satellite merger looms
Published by Global Banking & Finance Review®
Posted on September 26, 2025
2 min readLast updated: January 21, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on September 26, 2025
2 min readLast updated: January 21, 2026
The European Space Agency warns about monopolies as Airbus, Leonardo, and Thales discuss a satellite merger to compete with global rivals.
By Miranda Murray
BERLIN (Reuters) -A senior official from the European Space Agency said mergers could be needed to reach the scale to compete with U.S. and Chinese rivals, but that too much concentration could limit choice.
The only three European companies that deliver entire space systems rather than individual components - Airbus, Italy's Leonardo and France's Thales - are in talks to combine their satellite businesses.
"Having only one in the future is not too helpful," European Space Agency Director of Operations Rolf Densing told Reuters on Thursday. "On the other hand, they need a critical mass of business, which I perfectly understand."
The proposed 10 billion euro ($11.68 billion) satellite joint venture is designed to counter competitors, including Elon Musk's Starlink, and an initial agreement is possible before the end of the year.
The space agency is the largest customer for satellites in Europe and the European Commission, which can block merger proposals if it finds them anti-competitive, is likely to consider its views along with those of other customers.
Despite investment in other aspects of spaceflight, Densing said Europe continues to depend on others to launch its astronauts into space.
It should instead strive to conduct space missions entirely independently, without relying on foreign partners or external suppliers for critical components or services, Densing said.
"Former good partners are now in a war," he said. "And NASA is probably today not what it used to be a couple of years ago."
The increased importance of space in defence has added to the need for independence.
"I'm convinced that the future of defence is in space, or at least that space plays a major role in this," Densing said.
(Reporting by Miranda Murray; editing by Barbara Lewis)
Rolf Densing from the European Space Agency stated that while mergers could help achieve the scale needed to compete, excessive concentration could be detrimental.
The three European companies involved in discussions to combine their satellite businesses are Airbus, Italy's Leonardo, and France's Thales.
The proposed satellite joint venture is valued at 10 billion euros, approximately $11.68 billion, aimed at countering competitors like Elon Musk's Starlink.
Densing emphasized that Europe should strive for complete independence in space missions, without relying on foreign partners or external suppliers for critical components.
The increasing significance of space in defense has heightened the need for Europe to operate independently, as Densing believes the future of defense is heavily tied to space.
Explore more articles in the Headlines category
