The merger of space activities would create a colossus with governance 35-32,5-32,5% and Italian potential

Leonardo soars on Piazza Affari (Stock Exchange), registering an increase of over 3% (against a FTSE MIB index down 0.7%), thanks to strong market expectations regarding an imminent deal in the Space sector. Supporting purchases of the Italian stock is the near‑certain finalization of the project, code‑named "Bromo", which aims to merge Leonardo's satellite manufacturing and space services activities with those of the European giants Thales (+2.3% in Paris) and Airbus (+0.9%). The creation of this new joint-venture is valued at approximately €10 billion, and seeks to create a true European "champion" in the sector, following the successful model of Mbda in missiles.

According to press rumours, Leonardo's Board of Directors reportedly already approved the structure of the new entity yesterday, but official confirmation is still awaited.

JV structure and financial issues

The governance and ownership scheme, reported by international economic outlets, foresees a balanced shareholding split: Airbus would be capped at 35%, while Leonardo and Thales would each hold 32.5% of the new company. Market analysts such as Equita and Intermonte view the transaction as a "positive valuation catalyst" for Leonardo's share, but stress the need to clarify some crucial financial aspects. In particular, Airbus would contribute roughly half of the new group's total revenue, but by accepting a limited 35% stake it should receive a cash compensation from Thales and Leonardo to balance the value contributed. It also remains to be defined the strategy to unlock the cost synergies necessary to resolve the profitability issues affecting some of the business areas involved.

The operation has already received political support from the Italian Government. Yesterday the Minister for Enterprises and Made in Italy, Adolfo Urso, described the alliance as "the right path to create ever more European champions", underlining that Italy has "essential capabilities to guarantee Europe's autonomy and security" in the Space and Defence sectors.