Airbus and Thales push space index to new record high
For months, three European defense and aerospace companies have been planning to merge their satellite divisions to counter Elon Musk's Starlink satellites. "Project Bromo" could finally launch this month. Shares of the participating companies are rising, setting new records in the space index.
The European aerospace companies Leonardo, Thales, and Airbus could sign an initial agreement to merge their satellite businesses as early as this year, said Michael Schoellhorn, head of Airbus's defense and space division, in an interview on Sunday, confirming an earlier Reuters report. As part of "Project Bromo" – named after an Indonesian volcano – the three companies plan to establish an independent satellite company modeled on rocket manufacturer MBDA, valued at approximately ten billion euros, in order to compete with rivals from the US and China.
A policy document is expected to be signed, possibly as early as September 2025. Initially, the issue will include how the shares of the new company will be divided among the three participating companies: Thales, Leonardo, and Airbus. A nearly equal distribution is expected. The structure of the company's management also needs to be discussed.
"We are on the right track, but before we take such an important step, several questions still need to be clarified," the CEO of Airbus Defence and Space told the Italian daily Corriere della Sera . Airbus CEO Guillaume Faury said earlier this week that the companies were close to reaching an agreement.
Schoellhorn added that operations of this kind require a two-stage process consisting of a framework agreement and a phase leading to the actual closing of the deal. "In this case, I believe the signing (of an initial contract) could take place as early as 2025," he said.
Shares of the three companies involved are starting the new trading week with significant gains, fueled by the joint venture fantasy (and the thought of a potential IPO). Leonardo and Thales shares are approaching their record highs reached in June, and Airbus shares are even reaching a new all-time high of €196.08.
Thales and Airbus, along with six other companies, are also included in DER AKTIONÄR's Space Index. Launched at the end of 2021, this index recently reached a new record high.
The European aerospace industry is increasingly under pressure from American and Chinese competitors. The planned satellite alliance between Airbus, Leonardo, and Thales would be a strategic response—and could permanently shift the balance of power in the global satellite business. Airbus and Leonardo are current recommendations from DER AKTIONÄR, which expects further upside potential for all three companies.
Anyone interested in investing in Airbus, Thales, and six other companies via index certificates can find information about the space index at this link .
Conflict of interest notice: The price of the financial instruments is derived from an index as the underlying. Börsenmedien AG developed this index and holds the rights to it. Börsenmedien AG has entered into a cooperation agreement with the issuer of the securities presented, under which it grants the issuer a license to use the index. Börsenmedien AG receives remuneration from the issuer in this regard.
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