The European Commission (EC) has approved the proposed joint venture (JV) between Airbus Group and Safran, for space launcher activities, satellite subsystems and missile propulsion.
The joint investment is in line with efforts to reduce costs for future rockets and strengthen Europe’s competitiveness over the US rivals.
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After reviewing the transaction, the agency was concerned that the deal would significantly reduce competition in the supply of satellites and space vehicles.
The EC said that the JV would have limited Airbus competitors’ access to certain components, including hall-effect electric satellite thrusters, carbon-carbon cylinders for optical satellites, standard accuracy pressure transducers for satellites and thermal protection systems for civil re-entry bodies.
Airbus and Safran have agreed to separate Safran’s electric satellite propulsion operations from the JV and supply certain components to third-party prime contractor on transparent terms, to comply with the EC requirements.
The agency concluded that the proposed JV would not raise competition concerns, as modified by the commitments.
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By GlobalDataIn June, Airbus and Safran have announced plans to combine their launcher systems and propulsion systems operations.
Under the deal, the companies plan to initially create a joint programme company, to contribute their civil programme contracts and participations associated with civil launcher activities and subsequently contribute industrial assets to create a fully-fledged jointly owned competitive company.
