Acquisition of Spirit AeroSystems by Boeing for $4.7 billion given the green light by UK antitrust authorities
The Competition and Markets Authority (CMA) of the UK has given the green light to Boeing Co.'s $4.7 billion purchase of Spirit AeroSystems Holdings Inc., marking a significant step forward for the deal that was first reported in July last year.
The acquisition, which values Spirit AeroSystems at $37.25 a share in an all-stock deal, will reunite the firms after a 20-year separation. As part of the transaction, Airbus SE will take over parts of Spirit that make components for the European planemaker.
The deal was cleared after an initial investigation by the UK's antitrust watchdog. The CMA's decision to wave the deal through was not immediately published, but key reasons include maintaining supply chain competition, regulatory compliance through divestitures, and ensuring continuity of aerospace programs.
Spirit AeroSystems agreed to sell its Malaysian facility to Composites Technology Research Malaysia (CTRM), which maintains supply chain continuity for both Airbus and Boeing aerospace programs. This divestiture, along with Spirit’s transfers of other Airbus-related assets, ensured that competition in key aerospace component markets would be preserved.
The deal also addresses anti-competitive concerns by having Spirit AeroSystems divest parts of its business connected with Airbus programs. This move is intended to reduce overlapping interests after Boeing's acquisition.
The Federal Trade Commission and other regulators conducted a detailed review, including second requests for information under the HSR Act, ensuring thorough scrutiny before clearance. The deal is expected to close in Q4, 2025, according to a spokesperson for Spirit.
Meanwhile, Boeing has announced the replacement of its Chief Financial Officer (CFO) with a former Lockheed finance head. The reasons for this change were not immediately provided.
The deal brings a key supplier for Boeing's 737, 787 Dreamliner, and other commercial jets back to Boeing. However, further details about the reasons for the deal or its potential impact were not provided in the current paragraph.
Elsewhere, Air India has completed inspections on Boeing fuel switches, as per another report. Boeing didn't immediately respond to an email for comment regarding the deal.
[1] Competition and Markets Authority (CMA) Clearance Statement - Boeing Co.'s $4.7 billion purchase of Spirit AeroSystems Holdings Inc. [2] Federal Trade Commission Clearance Statement - Boeing Co.'s $4.7 billion purchase of Spirit AeroSystems Holdings Inc. [3] Boeing Press Release - Boeing Co.'s $4.7 billion purchase of Spirit AeroSystems Holdings Inc. [4] Spirit AeroSystems Press Release - Boeing Co.'s $4.7 billion purchase of Spirit AeroSystems Holdings Inc. [5] Reuters Article - Boeing Co.'s $4.7 billion purchase of Spirit AeroSystems Holdings Inc. - Detailed Analysis and Commentary.
- The clearance from both the Competition and Markets Authority (CMA) of the UK and the Federal Trade Commission signifies the green light for the $4.7 billion business deal between Boeing Co. and Spirit AeroSystems Holdings Inc.
- The finance aspect of Boeing's significant acquisition of Spirit AeroSystems, worth $4.7 billion, is further underscored by the extensive review conducted by the Federal Trade Commission under the HSR Act.
