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The competition heats up: The bureaucrats in the European Union have given their approval to the purchase by Airbus-Safran Launchers of Arianespace, thereby clearing the way for the privatization of that ESA entity and the construction, under Airbus-Safran control, of Ariane 6.
Following an in-depth review, the European Commission has approved under the EU Merger Regulation, the acquisition of Arianespace by Airbus Safran Launchers (ASL), a joint venture between Airbus and Safran. This approval is subject to conditions. Commissioner Margrethe Vestager, in charge of competition policy, said: “A well-functioning satellite and launcher industry is important to guarantee that European companies and institutions can gain access to space at competitive terms. The commitments offered by ASL ensure that after its takeover of Arianespace, all players in the industry will continue to have incentives to innovate.”
The Commission had concerns that the transaction would give rise to flows of sensitive information between Airbus and Arianespace to the detriment of competing satellite manufacturers and launch service providers. The Commission’s approval is conditional on the implementation of the commitments offered by the companies to address these concerns.
I must say that, in reading this story, I understood far better why the United Kingdom voted to leave the European Union. Though this particular deal is certainly different and involves many important government issues, if every private business deal is subject to the numbing concerns of this commission, I myself would run screaming from them as fast as I could.