ROME/PARIS: Europe's biggest aerospace firms are finally joining forces to fight back against Elon Musk's fast-growing Starlink empire.

After months of tense negotiations, Airbus, Thales, and Leonardo unveiled an agreement to merge their struggling satellite manufacturing operations into a single European venture. This long-discussed but elusive plan aims to restore Europe's competitiveness in the space race.

The new company, expected to launch in 2027 pending regulatory approval, will employ about 25,000 people across Europe and generate annual revenues of 6.5 billion euros (US$7.58 billion) based on 2024 figures, the firms said.

Under the terms of the deal, Airbus will hold a 35 percent stake, while Thales and Leonardo will each own 32.5 percent. The venture will operate under joint control "with a balanced governance structure," the statement said.

The partners expect "mid-triple-digit" millions of euros in annual operating synergies within five years of launch.

Code-named Project Bromo, the talks began last year and were inspired by the cooperation model of missile maker MBDA, which is jointly owned by Airbus, Leonardo, and BAE Systems.

Europe's leading satellite makers have struggled in recent years as the market shifted from large geostationary spacecraft to constellations of smaller, cheaper satellites in low Earth orbit, an area dominated by Starlink.

The CEOs of Airbus, Thales, and Leonardo said in a joint statement that the merger would help European governments ensure "Europe's autonomy across the strategic space domain."

The deal will combine Thales Alenia Space and Telespazio, joint ventures between Leonardo and Thales, with Airbus' space and digital units and the remaining space businesses of Leonardo and Thales SESO.

The companies, which have already cut about 3,000 jobs across their space divisions, did not mention any additional layoffs but said unions would be consulted.