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European Space Merger Faces Antitrust Scrutiny Over Competition Concerns

Financial Times Companies •
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Airbus, Leonardo, and Thales are preparing to file for European antitrust approval for their space unit merger, but OHB chief executive Marco Fuchs argues the deal will harm competition without effectively countering SpaceX. The companies agreed to the combination in October under the codename Bromo, seeking scale to compete with Elon Musk's expanding satellite constellation.

Fuchs contends the consolidation reduces suppliers for publicly funded space programs across the European Space Agency, European Commission, and national governments, ultimately increasing taxpayer costs. He disputes claims that the merged entity can effectively challenge SpaceX, noting the US company focuses on launch services and communications rather than manufacturing satellites for European institutional customers.

OHB recently announced a €510mn share issuance to fund more aggressive expansion, positioning itself to capitalize on reduced competition. Fuchs suggested German policymakers may be using the merger as a "symbol of Franco-German friendship" amid Germany's scaled-back defense projects and military buildup.

The debate highlights Europe's struggle to balance industrial consolidation against maintaining competitive markets in strategic sectors, with flagship programs like Galileo potentially facing fewer credible bidders.