Airbus and Thales: New Alliance on the Horizon?
Hello Traders,
We are in an era of intergalactic business, and Airbus (EPA:AIR, Ticker AT: AIR.FR/.GE) and Thales (EPA:HO) could join forces in the satellite arena. This potential alliance would create a strong pan-European space coalition to compete with the missile expertise of MBDA and large global players such as Lockheed Martin (NYSE:LMT), Northrop Grumman (NYSE:NOC), Boeing (NYSE:BA),Raytheon Technologies Corporation (NYSE:RTX), Maxar Technologies Inc (NYSE/TSX: MAXR), or privately held OneWeb, SpaceX (Elon Musk) and Blue Origin (Jeff Bezos).
Implications of the Alliance
• European Strengthening: It would increase European competitiveness in satellites.
• Synergies and Efficiencies: It would reduce costs and improve efficiency.
• Innovation: Accelerate satellite technology development.
Challenges
• Governmental Approval: It will be difficult to obtain approval, especially in France.
• National Interests: Possible reluctance due to security and technological sovereignty.
• Market Regulation: Authorities will evaluate to avoid a dominant position.
Recent regulatory news from Airbus has only worsened its share price. In summary, the alliance has great potential but will face political and regulatory challenges before materializing.
Do you think it can be realized? I look forward to hearing from you.
Ion Jauregui - Analyst ActivTrades
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