Antitrust Controversy Over Airbus, Leonardo and Thales Space Merger
As Airbus, Leonardo and Thales pursue a merger of their space divisions, Marco Fuchs, CEO of German satellite company OHB, criticized the deal, saying reduced competition could increase the burden on taxpayers. 3will seek a merger review, citing the need for economies of scale.
As Airbus, Italy’s Leonardo and France’s Thales pursue a merger of their space businesses, Marco Fuchs, chief executive of German satellite company OHB, raised concerns about reduced competition. Fuchs said 5on (local time) that the merger could reduce the number of suppliers available for space programs funded by public finances, increasing the cost burden on taxpayers.
The three companies agreed last year 10month to merge their space businesses, and the merger project is known by the code name ‘Bromo.’ 3plans to formally apply to European competition authorities for an antitrust review, arguing that economies of scale are needed to compete with the United States, China and others.
Fuchs described the merger as ‘a measure that undermines competition’ and said it would negatively affect European citizens and the supply ecosystem. He also expressed the view that the merged entity would struggle to become a direct competitor to SpaceX.
Fuchs, the CEO, explained that SpaceX is focusing on launch services and satellite communications rather than satellite manufacturing for European institutional customers, so the two businesses do not significantly overlap. The timing of the merger filing and the antitrust review is expected to depend on the decision of the European competition authorities.
Sources: 뉴시스 경제
Bullstory synthesized this report from the linked sources. AI may have assisted the writing process. Check the original reports for factual confirmation.