By Gianluca Lo Nostro
May 7 (Reuters) – German satellite maker OHB will consider legal action if EU antitrust regulators approve a planned merger of the satellite businesses of Airbus, Thales and Leonardo, its CEO said on Thursday.
The three aerospace and defence groups announced plans in October to combine their satellite manufacturing activities into a standalone company, code-named “Project Bromo”.
The companies say the venture would create a stronger European player, able to compete with Elon Musk’s SpaceX and Chinese rivals.
But OHB, one of Europe’s few independent satellite makers, fears the deal could weaken competition in Europe.
“We are raising concerns because it impacts our supply chain,” OHB chief Marco Fuchs told Reuters, describing the merger as “rather a disturbance of the market”.
Asked whether OHB would consider a legal challenge if the European Commission cleared the deal, Fuchs said: “Yes.”
The core issue for regulators is likely to be whether the new company would mainly use its scale to compete globally, as its backers argue, or whether it would reinforce their position in Europe.
Fuchs dismissed comparisons with Chinese competitors, saying Europe does not buy satellites from China.
OHB’s market value has risen roughly fivefold over the past year, to about 5 billion euros. On Thursday, it reported an 18% rise in quarterly revenue, with order backlog up 45%.
The company is considering financing options, Fuchs said, after abandoning a previous plan to take OHB private alongside minority investor KKR, as geopolitical changes have altered investor views of space companies.
Bloomberg News reported in March that the Fuchs family, which owns around 65% of OHB, and KKR, which owns roughly 29%, were discussing a sale of shares equivalent to 20% of the company. Fuchs declined to comment on the report.
“I’m not going to sell anything in a secondary (share sale),” Fuchs said, without disclosing how much OHB aimed to raise.
(Reporting by Gianluca Lo Nostro; Editing by Matt Scuffham)
Comments