Two European space technology giants, Germany’s Airbus and France’s Thales, are again in talks to merge their space activities, French weekly La Tribune has reported.
The operation would focus on bringing together Airbus Defence & Space (Airbus DS) and Thales Alenia Space (TAS), the business news outlet said on July 15.
There are reportedly several avenues being considered: a full merger, a joint venture, or a division of activities by speciality (telecommunications for one, observation for the other). Closer co-operation in programmes and export is also being discussed.
Still, the viability of the project will largely depend on the conditions imposed by the European Commission.
The two companies have explored the possibility of merging for about 15 years but it has not proved possible due to anti-trust issues.
Airbus CEO Guillaume Faury has publicly acknowledged the difficulties involved in any such consolidation in Europe.
In an interview with Le Monde in March this year, he pointed out that “competition rules in Europe make consolidations between large players in the same sector difficult but not impossible”.
On Thales’ side, the French Government has been informed of the negotiations and the French Ministry of the Armed Forces supported the discussions.
Any agreement, though, would also have to take into account Italy’s interests, as its multinational aerospace company Leonardo owns 33 per cent of TAS.
In February this year, Airbus said it would take a charge of €600 million for 2023 because of problems with satellite programmes.
On June 24, the company announced it was revising its guidance for 2024 because of issues with space programmes and a decline in commercial aircraft deliveries. That included a charge of €900 million it will record in the second quarter on its Space Systems business.
That was despite the fact that, according to its 2023 annual economic report, “orders received by Airbus Defence and Space by value increased by 15 per cent to €15.7 billion [up from €13.7 billion in 2022]”.
“Revenues at Airbus Defence and Space increased 2 per cent, mainly driven by Military Air Systems and Connected Intelligence, offset by some updated Estimates at Completion of certain Space programmes,” Airbus said.
Its aerospace department employs more than 100,000 people and is one of the world’s largest suppliers to the space industry.
TAS reported a net loss of €45 million in 2023, compared with a profit of €11 million in 2022. It produces high-tech solutions for telecommunications, navigation and surveillance.
The company reported in 2023 that due to the losses “the group announces an adjustment plan project at Thales Alenia Space concerning some 1,300 jobs, including 1,000 in France, which will be redeployed within the Group, without forced departures”.
“These redeployments will take place over the course of 2024 and 2025, in consultation with the employees’ representative bodies.”
European Commission sources declined to comment on the matter because it was “too early to make a decision on the matter”, given the lack of an official proposal.
Europe’s new Ariane 6 satellite launcher will stage a long-awaited inaugural flight on July 9, the head of the European Space Agency said at the Berlin Airshow on Wednesday. https://t.co/8fr8bPXuLY
— Brussels Signal (@brusselssignal) June 5, 2024
