The European Commission has concluded that the proposed creation of a joint venture for space launchers, satellite subsystems and missile propulsion between Airbus Group and Safran is in line with the EU Merger Regulation.
The decision is conditional upon the exclusion of Safran's activities in electric satellite thrusters from the joint venture, as well as on certain supply assurance commitments. The Commission had concerns that the joint venture could have shut out Airbus' competitors or limited their access to certain supplies, as well as transmitted strategic information to Airbus. The commitments offered by Airbus and Safran address these concerns.
On 8 October 2014, Airbus and Safran notified plans to create a joint venture to which they would contribute their respective activities in space launchers, satellite subsystems and missile propulsion. In addition, Airbus and Safran intend to acquire, at a later stage, control over the satellite launch operator Arianespace. However, this would be a separate transaction and this decision neither takes it into account nor prejudges the possible assessment of such a transaction in the future.
The Commission examined the competitive effects of the proposed transaction and concluded that, as initially notified, it risked to significantly reduce competition in the supply of satellites and space vehicles. The Commission found no risk of anticompetitive effects in the markets for space launchers and missile propulsion.
To dispel the Commission's competition concerns, Airbus and Safran committed to exclude Safran's activities in electric satellite propulsion from the joint venture as well as to maintain this business separated. Airbus and Safran also committed to conclude a framework supply agreement with Safran's current main customer, as well as to guarantee the supply of these components to any third party prime contractor on transparent and non-discriminatory terms.
These commitments address the competition concerns identified by the Commission. The Commission therefore concluded that the proposed transaction, as modified by the commitments, would not raise competition concerns. The decision is conditional upon full compliance with these commitments.