European defense giant Leonardo hopes to present a satellite alliance with Airbus and Thales within months, the company’s CEO told CNBC.European defense giant Leonardo hopes to present a satellite alliance with Airbus and Thales within months, the company’s CEO told CNBC.
ROME, Italy – European defense giant LeonardoAirbusThales
Following months of talks, Leonardo’s Roberto Cingolani told CNBC: “At the moment, we are working together and trying to find whether there is possible good synergy, whether this is convenient from a market point of view and, of course, also whether this is acceptable from the antitrust point of view.”
Reuters reported earlier this week that the three companies were in conversation with European regulators over a potential deal.
Speaking in Rome on Wednesday, Cingolani argued that in “emergency times,” regulations should be more flexible.
“The most relevant [thing] at the moment is to guarantee deterrence and security, global security content, more than the best price for a tank,” he said, adding that the firms were motivated to reach a deal and he would be surprised not to present a business plan.
Pressed on the timeline, he said it would not be years, and months would be “more reasonable.”
The discussions come at a critical time for European defense companies as the United States dials up pressure on the continent to step up its capabilities.
The arrival of Donald Trump in the White House has made Europe realize it cannot rely on the U.S. for defense; last month it announced a package of measures that could ultimately release about 800 billion euros in new defense spending.
Some European countries are also reevaluating alternatives to Musk’s Space X’s Starlink, a satellite internet service that has played a key role for Ukraine in its war with Russia.
Italy announced last month that it was suspending conversations with Space X over a secure communications system for defense. It came after opposition officials criticized the idea of a partnership with Musk following his controversial comments on Ukraine. Defense Minister Guido Crosetto said negotiations were on hold, but that Starlink may be an option in the future.
Leonardo’s CEO told CNBC that a European satellite alliance was not designed to challenge Musk, but rather to provide a European option.
A technology monopoly is “not good for anybody,” he added.
— CNBC’s Vivi Vitalone contributed to this report.
