European aerospace group Airbus is discussing the sale of some assets to allay competition concerns over its proposed space merger with Leonardo and Thales.

The proposed merger, codenamed Bromo, comes as Europe looks to compete with global rivals such as Elon Musk’s Space X amid the fast-developing race for satellite and space technology capabilities. Airbus has proposed the sale of some of its assets as the three European companies hold intensive talks with EU antitrust officials. No final package has been agreed before the transaction is formally submitted to the European Commission later this year.

The deal, struck in October last year, has drawn fierce criticism from Germany’s OHB and Spain’s Indra Space. Ursula von der Leyen called for industrial champions, but Teresa Ribera warned that the new merger guidelines were not a blank cheque. Andrius Kubilius said he was in favour of consolidation.