A proposed alliance meant to create a European space titan could crumble if regulators in Brussels demand heavy antitrust remedies, Leonardo CEO Lorenzo Mariani has warned. Speaking at the Farnborough International Airshow, Mariani cautioned that imposing major structural concessions would destroy the foundational logic of combining the satellite and space operations of Airbus, Leonardo, and France’s Thales. (FT)
Announced in late 2025 under the codename Project Bromo, the initiative aims to merge the three defense giants’ satellite manufacturing, space systems, and services divisions. The combined business would employ roughly 25,000 people across Europe, creating a unified incumbent capable of taking on massive global competitors—most notably Elon Musk’s SpaceX and its expanding Starlink constellation, as well as state-backed Chinese operators.
“We could really discuss some very minor structural measures, but any major one would destroy the project. It would be really a little bit absurd for Brussels to request structural concessions while simultaneously calling for European consolidation.”
— Lorenzo Mariani, CEO of Leonardo
The planned merger comes at a critical juncture for European industrial policy. As the bloc seeks greater strategic autonomy in defense, earth observation, and secure satellite communications, EU leaders have increasingly supported building regional champions. However, Project Bromo has drawn criticism from smaller European players, such as Germany’s OHB and Spain’s Indra Space, who fear the deal could reduce competition and squeeze independent suppliers out of procurement contracts.
The European Commission’s competition authorities are expected to receive the formal notification for Project Bromo later this year, with the companies aiming to be fully operational by 2027. The case will serve as a high-profile test for the EU’s refreshed merger framework, which seeks to balance domestic market competition against the need for global scale.
Mariani emphasized that while minor adjustments could be considered, severe divestment orders would neutralize the synergies needed to build a viable alternative to international rivals. Beyond the space deal, Mariani expressed optimism regarding European defense cooperation, welcoming Canada as an observer to the UK-Japan-Italy Global Combat Air Programme (GCAP) and confirming Leonardo’s willingness to adjust its asset portfolio—including its 22% stake in German radar maker Hensoldt—to fund future acquisitions in cyber, space, and drone technologies.