According to the Financial Times on July 5, Marco Fuchs, CEO of German satellite manufacturer OHB, criticized the merger as a "competition-destroying consolidation."
Codenamed "Bromo," the merger seeks to combine the space divisions of Airbus, France's Thales, and Italy's Leonardo. The three companies agreed to the merger last October and plan to seek antitrust approval from European authorities soon.
The companies argue that a large space enterprise is necessary in Europe to compete with the rapid expansion of SpaceX and Starlink. They believe that European firms must collaborate to achieve economies of scale.
However, Fuchs pointed out that using competition with SpaceX as a justification for the merger is misguided. He noted that while SpaceX excels in launch vehicles and satellite communications, the focus of the three merging companies is primarily on satellite manufacturing for European institutional clients.
He stated, "The issue is not the evil Elon but the formation of a monopoly within Europe." There are concerns that reduced bidding competition for public projects like Galileo, commissioned by the European Space Agency (ESA), the European Commission, and various national governments, could lead to increased costs.
Last month, OHB announced a plan for a capital increase of up to 510 million euros (approximately $892 million). Fuchs described this as a "growth strategy against the Bromo merger," while also asserting that the merger could heighten the risk of reduced competition across the European space industry.
* This article has been translated by AI.
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