Three major European aerospace and defense firms, Airbus, Thales, and Leonardo, have signed a memorandum of understanding (MOU) to merge their space units into a single entity . The agreement, announced on October 23, 2025, signals a strategic pivot for European players seeking to scale up quickly in the global space and satellite connectivity market and positions the new entity as a competitor to Elon Musk's Starlink .

The merged entity would pool satellite manufacturing, launch capabilities, ground infrastructure, and service provision under one roof. The intention is to create a vertically integrated challenger capable of delivering high-throughput broadband, IoT connectivity, and secure government communications at scale. With Starlink already operating thousands of satellites,

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