Aerospace groups link up to create European rival to Musk’s SpaceX

Deal between Airbus, Leonardo and Thales is expected to create company with annual revenue of £5.6bn

Airbus, Leonardo and Thales have struck a deal to combine their space businesses to create a single European technology company that could rival Elon Musk’s SpaceX.

The deal is expected to create a company with annual revenue of about €6.5bn (£5.6bn). The French aerospace company Airbus will own 35% of the new business, with Leonardo and Thales each owning stakes of 32.5%.