Boeing Secures EU Approval for Spirit AeroSystems Acquisition
Conditional approval for the deal hinges on divesting Spirit's Airbus-related operations to address antitrust concerns.
Boeing has secured conditional antitrust approval from the European Union for its acquisition of key supplier Spirit AeroSystems, a critical step in the aerospace giant's effort to bring more of its manufacturing in-house. The deal is aimed at tightening control over its supply chain following a series of high-profile quality control issues.
The approval from the European Commission, the EU's powerful antitrust authority, is contingent on significant concessions from Boeing. To preserve competition in the aerospace sector, . This move is designed to prevent disruptions to Airbus's supply chain and ensure a level playing field.
"Boeing's commitments will preserve competition in this crucial market and enable the entry of a new rival, and ensure commercial aircraft makers get the parts they need at competitive prices," stated EU antitrust chief Teresa Ribera in a statement. The transaction, which still requires regulatory clearance in the United States, is a strategic push by Boeing to vertically integrate a supplier it spun off nearly two decades ago.
The acquisition is a pivotal moment for Boeing as it seeks to stabilize its manufacturing processes. Spirit AeroSystems, which builds the fuselages for Boeing's best-selling 737 MAX jets, has been at the center of production challenges. By reabsorbing Spirit, Boeing aims to gain direct oversight of manufacturing and quality, a move seen by many analysts as necessary to restore confidence in its aircraft.
Market reaction to the EU's decision was muted but positive. Following the announcement, , while Spirit AeroSystems' stock saw a modest 0.2% increase. The deal, valued at approximately $4.7 billion in an all-stock transaction, is expected to close later this year, pending the remaining regulatory approvals.
A spokesperson for Spirit AeroSystems called the EU approval "another milestone toward transaction closure," signaling the company's eagerness to finalize the merger. For Boeing, the move represents a long-term strategic bet on the benefits of vertical integration to overcome its recent operational headwinds and solidify its market position.