Brussels: In a significant development for the aerospace industry, Boeing has received antitrust approval from the European Union for its $4.7 billion acquisition of Spirit AeroSystems. This approval comes after Boeing agreed to divest certain Spirit businesses to address competition concerns.
The acquisition, announced in July 2024, aims to streamline Boeing's operations and enhance quality control by reacquiring a key supplier it had spun off years earlier. However, the European Commission expressed concerns that the deal could significantly reduce competition in the global aerostructure market and the large commercial aircraft sector.
To address these concerns, Boeing has agreed to sell all of Spirit's businesses that currently supply aerostructures to Airbus. Additionally, Boeing will divest Spirit's site in Malaysia that supplies aerostructures to Airbus to Composites Technology Research Malaysia Sdn Bhd, allowing a new competitor to enter the market.
EU antitrust chief Teresa Ribera stated that these commitments will preserve competition in this crucial market and ensure that commercial aircraft manufacturers have access to competitively priced parts.
Following the EU's approval, Boeing's stock price saw a modest increase, reflecting investor confidence in the deal's progression. As of the latest trading session, Boeing's stock price stands at $216.18, marking a 0.29% gain. Spirit AeroSystems' stock price remains steady at $38.93.
Analysts view this acquisition as a strategic move by Boeing to consolidate its supply chain and improve operational efficiency. The divestitures are expected to mitigate potential anti-competitive effects, ensuring a balanced competitive landscape in the aerospace industry.