ROME — Europe’s three big space operators have announced a merger of their space businesses to take on competitors like Elon Musk’s Starlink. Airbus, Thales and Leonardo will pool their space efforts in a new company employing 25,000 staff with an an annual turnover of about €6.5 billion ($7.5 billion) and a three-year order backlog, the firms said on Thursday.

“The combination is expected to generate mid triple-digit million-euro of total annual synergies on operating income five years after closing,” the firms added.

The new company, which has been in the pipeline for months, aims at boosting “Europe’s strategic autonomy in space, a major sector that underpins critical infrastructure and services related to telecommunications, global navigation, earth observation, science, exploration and national security,” the firms stated.

“This new company also intends to serve as the trusted partner for developing and implementing national sovereign space programs,” they added.

The firm should be operational by 2027, they said.

Airbus will take a 35% stake with Leonardo and Thales each taking a 32.5% stake, while the firm will operate “under joint control, with a balanced governance structure among shareholders,” the firms said.

Executives including Leonardo CEO Roberto Cingolani have spoken of the need for Europe’s space businesses to come together in the same way Airbus, Leonardo and BAE Systems have merged their missile activities in MBDA.

Airbus will insert its Space Systems and Space Digital businesses into the new firm, while Leonardo will contribute its Space Division, including its shares in Telespazio and Thales Alenia Space. Thales will contribute with stakes in Thales Alenia Space, Telespazio and Thales SESO.

Europe’s space businesses have long planned to ally after struggling to keep up with fierce competition from Elon Musk’s Starlink. But industry mergers have also faced opposition from European Union anti-trust officials who fear a concentration of power in the industry could stifle competition on the continent.

In their statement the firms said it was time for Europe to bulk up to take on competition from overseas. The new company, they said, would “Increase competitiveness facing global players, reaching critical mass and ensuring Europe secures its role as a major player in the international space market.”

Leonardo’s Cingolani, Airbus CEO Guillaume Faury and Thales CEO Patrice Caine, added, “This partnership aligns with the ambitions of European governments to strengthen their industrial and technological assets, ensuring Europe’s autonomy across the strategic space domain and its many applications.”