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, Boeing has agreed to divest Spirit's operations that supply parts to its main rival, Airbus. 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, Boeing's shares traded up nearly 0.4%, 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.