The new company could be operational as early as 2027, pending regulatory approvals. Airbus will be the majority owner of the new joint venture with a 35% stake, and Leonardo and Thales will each hold a 32.5% stake in the new company. It comes as Europe looks to develop a homegrown rival to Elon Musk’s Starlink, which has a vast presence across the continent. Airbus employees stand in front of the MetOp-SG A (L) and MetOp-SG B (R) MetOp-SG (Meteorological Operational Satellite - Second Generation) meteorological satellites in the clean room of the company's defense and space branch on November 10, 2023 in Toulouse, southwestern France. MetOp-SG is a family of meteorological satellites placed in sun-synchronous polar orbit which will make it possible to refine short-term forecasts. (Photo by Lionel BONAVENTURE / AFP) (Photo by LIONEL BONAVENTURE/AFP via Getty Images) Lionel Bonaventure | Afp | Getty Images Europe wants to pour billions of dollars into its own defense companies — but market watchers say it may not be able to shut American firms out The firms said the new space entity would be "a unified, integrated and resilient European space player, with the critical mass to compete globally and grow on the export markets." "This new company also intends to serve as the trusted partner for developing and implementing national sovereign space programs," they added. Touting the joint venture as "a pivotal milestone for Europe's space industry," the chief executies of the firms said in a joint statement that it would help "build a stronger and more competitive European presence in an increasingly dynamic global space market." They stressed that the move would allow Europe to retain control over its domestic space operations, as regional governments look to pour cash into their aerospace and defense capabilities. Starlink rival Europe has been looking for an alternative to Starlink, the satellite broadband service owned by Musk's space exploration firm SpaceX that currently dominates the sector and has a vast presence across Europe. Starlink has played a critical role in Ukraine's war effort since Russia's full-scale invasion of the country in 2022, but issues have reportedly arisen in the past with communication blackouts. Earlier this year, it was rumored that Eutelsat — the French firm that merged with Britain's OneWeb in 2023 — was in the running to replace Starlink in Ukraine. French President Emmanuel Macron, meanwhile, has backed the concept of a European satellite champion, arguing in a speech over the summer that "space has in some way become a gauge of international power." Meanwhile, Italian lawmakers warned against involving SpaceX in an update to the country's satellite program back in July. Speculation that Airbus, Leonardo and Thales would join forces on satellite functions has been building for some time. Back in April, Leonardo CEO Roberto Cingolani told CNBC he was hopeful the alliance would come to fruition in the coming months. He said at the time that the joint venture would not be specifically designed to challenge Starlink, but to provide a European alternative. watch now