By Mucahithan Avcioglu
ISTANBUL (AA) - Dutch-based aerospace giant Airbus announced Thursday that it had signed a memorandum of understanding with Italy's Leonardo and France's Thales aimed at combining their respective space activities in a new company.
Airbus said in a statement that by joining forces, the three companies aim to strengthen Europe’s strategic autonomy in space, a major sector that underpins critical infrastructure and services related to telecommunications, global navigation, earth observation, science, exploration, and national security.
"This new company also intends to serve as the trusted partner for developing and implementing national sovereign space programs," it said.
The statement said the new company will bring together comprehensive technologies and solutions that include space infrastructure and various services in this field, adding that the new company “could be operational in 2027, subject to regulatory approvals and satisfaction of other closing conditions."
Airbus said the as-yet unnamed new company will accelerate innovation in the strategic field of space, adding: "The combination is expected to generate mid triple-digit million euro of total annual synergies on operating income five years after closing."
The new company will employ around 25,000 people across Europe, and will post annual turnover of about €6.5 billion ($7.5 billion) and an order backlog representing more than three years of projected sales, it said.
Airbus will have a 35% stake in the new firm, while Leonardo and Thales will have both 32.5% shares.
"It will operate under joint control, with a balanced governance structure among shareholders," it added.