German satellite manufacturer OHB SE has warned that it could take legal action if European competition authorities approve the proposed merger of the satellite businesses of Airbus, Thales and Leonardo.
OHB's CEO said on Thursday that his group was considering legal action against a possible validation of this operation by the European Union, believing that this alliance could profoundly transform the European space landscape.
The three major aerospace and defense groups announced in October their intention to combine their satellite manufacturing activities into a new independent company called "Project Bromo." According to them, this joint venture would allow Europe to better compete with American and Chinese players in the space sector.
The companies concerned assert that the European industry must consolidate to face increasingly aggressive international competition, in a context marked by the rise of commercial satellites, military needs and new space technologies.
However, OHB believes that such a merger risks significantly reducing competition within the European market and weakening smaller players in the sector. The German group is particularly concerned that such a powerful entity could dominate certain strategic segments of the space industry.
The project is now being closely examined by European competition authorities, who will have to decide whether this alliance complies with the rules of the common market and does not threaten the competitive balance in Europe.
This case illustrates the growing tensions between the desire to create major European industrial champions capable of competing globally and the need to preserve open competition within the European space sector.
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