MOUNTAIN VIEW, Calif. — Fresh questions are emerging over Rocket Lab’s proposed acquisition of German laser communications firm Mynaric as Europe doubles down on its push for domestic space and defense capabilities.
How the U.S. company’s bid will fit into the region’s evolving industrial policy is a source of speculation while the German government continues to review the proposed acquisition.
Rocket Lab, based in Long Beach, California, announced in March that it planned to acquire Munich-headquartered Mynaric for about $150 million, pending German government approval under foreign direct investment (FDI) rules. Mynaric develops laser communications terminals used to transmit data between satellites — a key enabling technology for next-generation defense and commercial constellations.
Richard French, Rocket Lab’s vice president of business development, said Oct. 30 that the company is still waiting for Berlin’s review to conclude. “We obviously have been public that we intend to acquire Mynaric and that requires German foreign direct investment approval,” he said during a panel discussion at the MilSat Symposium. “This would be our first European base.”
Europe’s strategic priorities have somewhat shifted since the deal was announced, as European governments step up investments in space and defense and are emphasizing the development of domestic industrial capabilities. French said that the current environment creates an important opportunity for Rocket Lab in Europe.
Role in European space programs
A central question for regulators and industry observers is whether Mynaric, once owned by Rocket Lab, would still be deemed a European entity — a status that could determine its eligibility to compete for Europe’s planned sovereign communications network, known as IRIS² (Infrastructure for Resilience, Interconnectivity and Security by Satellite). The multibillion-euro program, backed by the European Union, is designed to strengthen Europe’s independence in secure satellite communications and may restrict participation to European-controlled firms.
French said Rocket Lab would seek to “enhance Mynaric’s ability to compete” for European programs and to meet eligibility requirements for IRIS².
Adding to the political sensitivities, Germany has announced plans to invest about $40 billion in defense space technologies over the next five years — an unprecedented commitment reflecting growing concern about reliance on U.S. systems and the security challenges posed by Russia. The surge in funding is fueling what officials describe as a drive for “sovereign space systems” that nations can own and operate independently.
French called these developments “very exciting” for the industry but declined to say how they might affect Rocket Lab’s pending acquisition. “I won’t speculate on how it’s going to go, or how it is going,” he said. “But I think it’s very logical to think that if it all does work out, Mynaric’s ability to bid will be unchanged,” he added, referring to potential participation in IRIS² or other European programs.
Germany’s review is likely to hinge on national interest considerations and whether “they think it’s good for Germany,” Randy Segal, a partner at Hogan Lovells who specializes in the space industry, said at the MilSat panel. She noted she had no direct knowledge of the deal.
Regulators make assessments on what is good for the country and that varies from country to country, Segal said. In the United States, regulators might require a U.S. ownership structure to approve an acquisition by a foreign company. Other countries prioritize jobs staying in the country or facilities in the country. “And so all of this is dependent on the regulator. I have no insight into what is going on in Germany, but if the German government does approve the transaction, you can be assured that they will be supportive of Mynaric after the transaction as well,” she said.
Mynaric, publicly traded on both Nasdaq and the Frankfurt Stock Exchange, makes the CONDOR Mk3 optical terminal, designed for inter-satellite laser links. The system is already being used on satellites procured by the U.S. Space Development Agency for the Proliferated Warfighter Space Architecture, a constellation of hundreds of defense satellites.
Rocket Lab’s CEO Peter Beck said in May that the decision to acquire Mynaric came after Rocket Lab selected the company’s terminals for its satellites under a $515 million contract with the Space Development Agency. “We chose Mynaric as our optical terminal in our SDA program because we believed it was the best. It was the lightest and the highest performing terminal.”
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