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Investing.com -- European aerospace giants Airbus, Leonardo and Thales have signed a Memorandum of Understanding to combine their space activities into a single new company expected to be operational by 2027.
Under the agreement, Leonardo will contribute its Space Division, including its 67% stake in Telespazio and 33% stake in Thales Alenia Space. Telespazio is currently line-by-line consolidated and profitable, while Thales Alenia Space is equity consolidated and currently loss-making.
The new venture generated €6.5 billion in pro-forma sales in 2024, though profitability figures were not disclosed but described as low. Leonardo will hold a 32.5% stake in the new entity, which will likely be equity consolidated.
The companies expect the combination to generate approximately €500 million in total annual synergies on operating income five years after closing. This represents a potential 4-5% increase on Leonardo’s expected EBITA for 2023.
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