The Airbus logo at the company's pavilion during the 55th edition of the International Paris Air Show at the Paris-Le Bourget Airport, in Le Bourget, near Paris, France, June 20, 2025. MOHAMMED BADRA/Pool via REUTERS
Thales logo is seen in this illustration taken July 26, 2025. REUTERS/Dado Ruvic/Illustration
View of the Leonardo logo during the 55th International Paris Airshow at Le Bourget Airport near Paris, France, June 16, 2025. REUTERS/Benoit Tessier

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ROME/PARIS (Reuters) -A framework agreement between France's Airbus and Thales and Italy's Leonardo to create a major new European satellite manufacturer will still require some weeks, a source told Reuters on Monday.

The person familiar with the matter said key details remain under discussion and that the boards of the three companies are working to reach a unified position.

Talks between the aerospace companies encountered a setback after existing partners Thales and Leonardo asked for more time, French daily La Tribune reported.

Leonardo declined to comment. Thales did not immediately reply to requests for comment.

A spokesperson for Airbus said: "Talks with our partners continue and are confidential in nature; it is too early to comment further".

Airbus and the other two companies, which own Airbus' main competitor in satellite production, Thales Alenia Space, have been in talks for months to create a new European venture to compete more effectively with rivals from China and the U.S., including Elon Musk's SpaceX.

The deal aims at combining Thales Alenia Space and Telespazio - two joint ventures between Leonardo and Thales - Airbus Space Systems, Airbus Intelligence and the space activities owned by Leonardo.

La Tribune reported that talks accelerated last week but hit a last-minute obstacle over how workshare would be divided among the three companies.

(Reporting by Giuseppe Fonte in Rome, Tim Hepher in Paris and Giulia Segreti in Rome; Editing by Kirsten Donovan and Louise Heavens)