What Is Project Bromo? Can Europe’s New Space Giant Threaten SpaceX and Starlink?

TradingKey - Airbus, Italy's Leonardo, and France's Thales are advancing a space business consolidation plan codenamed "Project Bromo".

The three companies signed a memorandum of understanding on October 23, 2025, proposing to combine parts of their respective space operations into a new company. The project remains subject to final agreements, equity and operational arrangements, and an EU competition review, and has not yet been officially established.

What Is Project Bromo? Why Europe Is Pushing for Integration

Bromo is a proposed aerospace business consolidation plan spearheaded by Airbus, Leonardo, and Thales, covering satellite manufacturing, space systems, satellite communications, and related services.

Bloomberg previously reported that the joint venture's annual revenue could reach approximately 6.5 billion euros, with a preliminary equity structure of 35% held by Airbus and 32.5% each by Leonardo and Thales. These figures represent a preliminary proposal, and the final assets included, equity structure, and governance arrangements remain subject to adjustment.

According to a Bloomberg report on October 15, the EU is communicating with the three companies to accelerate the subsequent antitrust review process. Over the past year, discussions have primarily focused on potential competition concerns, and the companies are expected to submit a formal application in the coming weeks.

Europe is driving Bromo primarily to scale up its space industry and enhance local supply chains and key technological capabilities. SpaceX (SPCX) has established strong comprehensive capabilities in rocket launching, satellite manufacturing, and low-Earth orbit satellite communications, whereas European companies remain relatively fragmented, facing pressure in R&D investment, product iteration, and satellite deployment efficiency.

The EU is advancing its IRIS² secure satellite communications program, which could bring orders for government communications, defense space, and critical infrastructure to European companies in the future. However, such projects represent potential sources of demand and cannot be directly viewed as contracts already secured by Bromo.

Bromo also faces antitrust headwinds. Companies such as Germany's OHB and Spain's Indra worry that a merger of the three aerospace giants could reduce competition in the European satellite market. The EU competition chief has indicated that the project will not receive automatic approval simply because of its strategic significance.

Business Model Differences Between Bromo and SpaceX Starlink

From a business model perspective, Bromo is closer to a space equipment and systems supplier, while SpaceX and Starlink possess a complete business system from launch to network operations.

SpaceX's advantage lies in simultaneously mastering rocket launch, satellite production, and network operation capabilities. Starlink has established LEO satellite networks and user bases in multiple markets, while its higher launch frequency also helps lower satellite deployment costs.

Bromo currently has not announced a global LEO broadband network plan similar to Starlink, nor has it disclosed satellite numbers, user scale, or deployment timetables. Even if the project is approved, the new company still needs to address challenges such as mass satellite production, launch resources, terminal costs, network coverage, and long-term operations.

Therefore, Bromo's short-term competitive focus is more likely to center on European government communications, defense space, satellite manufacturing, and system integration projects, rather than directly competing for global commercial broadband users.

What Does Bromo Mean for SpaceX Investors?

If the European Union and its member states increase support for European suppliers in government communications, defense aerospace, and critical infrastructure projects, SpaceX may face greater competitive pressure when participating in related projects. Bromo could also alter the allocation of orders in the European satellite manufacturing and system integration markets.

However, for Starlink's global business, the short-term impact remains limited. Bromo has yet to complete competition review and formal establishment, nor does it possess a network scale comparable to Starlink. SpaceX still boasts high launch frequencies, mature satellite production capabilities, and long-term operational experience.

Going forward, SpaceX investors should monitor three key developments: the outcome of the EU competition review, the final equity and business arrangements among the three companies, and whether public projects such as IRIS² can translate into actual orders.

In addition, whether the new company can establish stable satellite production and launch capabilities will also determine whether it can evolve from an industrial consolidation plan into a genuine commercial competitor.

Overall, Bromo may increase competitive pressure on SpaceX in European government space projects, but it is unlikely to weaken Starlink's global scale advantage in the short term.

Factors with a greater impact on SpaceX's long-term value remain Starlink's user growth, satellite launch efficiency, enterprise and government contracts, and changes in European spectrum and market access policies.