OHB Intends to Formally Challenge the Airbus-Thales-Leonardo Merger
Marco Fuchs, Chief Executive Officer of OHB, a leading German aerospace and defense contractor, headquartered in Bremen, plans to engage directly in antitrust proceedings related to the proposed merger between Airbus, Thales, and Leonardo. His aim is to demonstrate that such consolidation could potentially restrict competition within the European space sector. Fuchs remarked, “We will be vocal about our view that we think that this is limiting competition. We are concerned, and we will participate in the antitrust process against it.”
OHB is among several organizations raising concerns regarding the prospective pan-European merger. Recently, European venture capital investors conveyed that although the immediate impact on nascent space startups may be limited, given their infrequent direct competition with established aerospace and defense primes, the merged entity could soon become a principal beneficiary of substantial government contracts.
The ramifications for OHB are multifaceted. The company regularly competes with Airbus, Thales, and Leonardo for major contracts, yet has also collaborated with Thales Alenia Space (a joint venture between Thales and Leonardo) on key projects, including the Laser Interferometer Space Antenna (LISA) mission and forthcoming Copernicus Earth Observation satellites.
Fuchs emphasized that the proposed merger introduces risks to OHB’s supply chain, noting, “It is negative in the sense that it impacts our established value supply chains- and our value creation reality that we have for European Space Agency business with Thales. We want to safeguard our supply chain. So, we want to make sure they compete. We want to have a level playing field.”
The transaction involving Airbus, Thales, and Leonardo is currently undergoing comprehensive regulatory and antitrust scrutiny and is not expected to conclude before 2027. This extended timeline affords OHB significant latitude to refine its strategic approach amidst shifting competitive dynamics. The company has already initiated forward-looking actions; notably, in August, OHB exceeded €3 billion in backlog for the first time in its history. In the short term, OHB is expanding production capacity to meet current commitments and capitalize on increasing European investment in the space industry.
OHB recently announced two key acquisitions to strengthen its domestic manufacturing capabilities for space components and infrastructure. On October 29th, OHB completed the purchase of the remaining 30% stake in MT Aerospace, thereby acquiring full ownership. MT Aerospace is Germany’s largest supplier to the Ariane 6 program and holds a contract with ArianeGroup to deliver components for 27 upcoming launches.
Soon after, OHB disclosed its acquisition of TechniSat’s manufacturing facility in Schöneck, Germany, with plans to broaden production of electronic components for the space sector. Fuchs described this move as “opportunistic,” allowing OHB to secure control over an existing facility at substantially reduced costs compared to new construction.
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