By AeroMorning 

20 October 2025 – European aerospace leaders Leonardo, Airbus, and Thales have reportedly reached a framework agreement to merge their satellite manufacturing operations, marking a significant step toward increased competition in the global satellite market. The initiative, dubbed the “Bromo Project” after an Indonesian volcano, aims to consolidate expertise and resources to rival major international players, including Starlink.

The agreement represents the initial stage of a broader integration plan, which sources suggest could take up to two years to fully implement. Under the proposed arrangement, the three companies would establish a joint satellite manufacturing entity, combining capabilities across design, production, and deployment.

This move follows months of renewed negotiations, after earlier discussions were stalled over governance structures and valuation disagreements. The consolidation is modeled on the European missile collaboration MBDA, highlighting a trend of strategic pan-European partnerships in the defense and aerospace sectors.

Industry analysts note that the creation of a unified European satellite manufacturer could strengthen the region’s position in a market projected to reach over $665 billion in the next decade. However, the deal is expected to require careful review by regulatory authorities, including antitrust oversight by the European Commission, before it can be finalized.

While Leonardo, Airbus, and Thales have declined to provide official statements, sources close to the negotiations confirm that the framework agreement signals a serious commitment to European satellite collaboration. The companies are reportedly evaluating key strategic, financial, and operational aspects, with final approval contingent on board and regulatory endorsements.

The “Bromo Project” illustrates the growing urgency for European aerospace firms to consolidate capabilities and compete more effectively with the United States and China in space technology. If successfully executed, the merger could pave the way for a new era of European competitiveness in satellite manufacturing, innovation, and deployment.