UK rocket start-up Orbex is in advanced talks to sell to a Franco-German space group, a potential deal that would transfer a government-backed company to foreign ownership. The move comes as the UK tries to establish a domestic launch capability, raising questions about the long-term strategy for its space sector.

A sale would mark a significant shift for the UK's space ambitions, which have relied on public funding to nurture domestic champions. Orbex, based in Scotland, has been developing its Prime rocket to compete in the growing small-satellite launch market. Handing control to a continental rival could consolidate European space assets but diminish London's direct influence over a key technology.

The talks highlight the intense consolidation in Europe's commercial space industry, where scale is critical to compete with global players like SpaceX. For investors, a transaction would signal the valuation of a pre-revenue launch startup. The outcome will be closely watched by policymakers in Westminster and industry rivals across the continent.