Airbus, Leonardo, Thales to Create Europe Satellite Venture (2)

Airbus SE, Leonardo SpA and Thales SA sealed a long-awaited agreement to merge their satellite operations and create a European joint venture that would compete with Elon Musk’s SpaceX.

The preliminary deal wraps up months of three-way talks and clears the path to create a single company with annual revenue of about €6.5 billion ($7.5 billion). Airbus will own 35% of the group, with the other two partners each holding 32.5% stakes, according to a joint release.

The alliance, dubbed Project Bromo, is seen as a key litmus test for Europe to consolidate its fragmented ...