It’s more that they’re targeting SpaceX, and there’s some assumptions that maybe they’re going to maybe come up with an alternative to Starlink

The companies — each a heavyweight in the aerospace and defense sector in their own right — said the joint venture would develop and build, “a comprehensive portfolio of complementary technologies and end-to-end solutions, from space infrastructure to services.” The development of space launchers will be excluded from the new company’s operations.

(emphasis mine)

I don’t say you’re wrong, but I got the opposite conclusion from the article.

The combined entity is expected to generate mid-triple-digit million euros in annual synergies on operating income within five years of closing [which is 2027 according to the report], and it’s set to employ 25,000 people across Europe.