Airbus and Leonardo call for European space champion to take on SpaceX

{"text":[[{"start":11.85,"text":"The chief executives of Airbus and Leonardo are pushing Brussels to approve their proposed pan-European space merger with Thales, arguing that consolidation was essential to compete against global rivals such as Elon Musk’s SpaceX."}],[{"start":26.7,"text":"“Without co-operation, European industries will never reach the critical mass and the capability to really be worldwide champions as an alternative not only to American companies but also as an alternative to many other players that are coming from the market,” Lorenzo Mariani, Leonardo’s recently appointed chief executive, told the FT."}],[{"start":47.3,"text":"The deal between the European aerospace group and the French and Italian companies, codenamed Bromo and struck in October last year, would combine activities spanning satellite manufacturing to space systems and services. "}],[{"start":60.099999999999994,"text":"It has drawn criticism from other European players, including Germany’s OHB and Spain’s Indra Space, who fear the deal could reduce competition in the European satellite market. "}],[{"start":null,"text":"

"}],[{"start":72.1,"text":"Their comments come as the companies are close to a formal filing for European competition authorities. The European Commission, the bloc’s antitrust enforcer, has recently published new merger guidelines which can put more emphasis on the benefits of corporate scale to compete in a global market. The space merger is seen in Brussels as one of the first test cases for the new merger policy. "}],[{"start":96.3,"text":"Brussels is also putting greater focus on increased European sovereignty in the space sector, as European governments are seeking to end their dependence on the US by building satellite constellations for reconnaissance, intelligence and communications. European space commissioner Andrius Kubilius spoke in favour of the merger last month. "}],[{"start":118.75,"text":"The proposed tie-up comes as Europe’s space industry faces growing pressure from US and Chinese competitors. European satellite makers have struggled to adapt to the revolution in satellite demand caused by the rapid expansion of SpaceX’s Starlink."}],[{"start":133.45,"text":"Mariani and Airbus chief executive Guillaume Faury argued scale was the only way to remain competitive."}],[{"start":140.1,"text":"“We have the competencies, we have the skills, we have the technologies, but we’re missing the scale,” Faury told reporters in Brussels. "}],[{"start":149.65,"text":"The Airbus chief pointed out that investment levels were much higher in the US and China and that the companies were facing “a global market with very large competitors”, including SpaceX. "}],[{"start":160.3,"text":"Without consolidation, Europe risked slipping “from the Champions League to lower leagues”, Faury said. "}],[{"start":null,"text":""}],[{"start":166.25,"text":"Those political signals left both executives optimistic about securing regulatory approval from Brussels."}],[{"start":172.95,"text":"“I’m optimistic on the outcome because I think that everybody knows that this is a crucial step for the European presence and relevance in space,” Mariani said. "}],[{"start":181.95,"text":"“Space is a sector that is growing, and is moving very fast. We have seen interesting things happening in the US … [and] worldwide. The minimum that Europe can do is really join forces.”"}],[{"start":193.85,"text":"During his visit in Brussels, Faury stressed there was a “good understanding for the strategic relevance of succeeding in Bromo, especially as the space segment was becoming more and more of a military and defence nature, where consolidation is needed and where typically the sovereignty of Europe is at stake.” "}],[{"start":214.4,"text":"OHB has already warned it could pursue legal action to challenge the merger. The German satellite maker, which on Monday announced that it was issuing new shares to raise up to €510mn to fund its growth ambitions, argues the deal risks concentrating too much market power."}],[{"start":231.1,"text":"Mariani argued that a stronger European champion would benefit the wider ecosystem, especially as public and private investment in the sector increases."}],[{"start":240.29999999999998,"text":"“The only way to develop the whole supply chain is to build this champion,” he said. “If we build this champion, also the European supply chain will be promoted and protected. If we do not, we will not protect the supply chain.”"}],[{"start":253.79999999999998,"text":"Additional reporting by Laura Pitel in Berlin"}],[{"start":264.9,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1782214840_7797.mp3"}