EU Approves Boeing’s $4.7 Billion Acquisition of Spirit AeroSystems

The European Commission (EU) has approved Boeing’s proposed $4.7 billion acquisition of Spirit AeroSystems, the companies announced on Tuesday. The approval follows a review process in which Boeing agreed to divest certain Spirit businesses to address competition concerns in the European market.

Regulators determined that the transaction, as initially structured, could reduce competition in the global market for aerostructures and large commercial aircraft. To secure clearance, Boeing committed to selling all Spirit operations supplying aerostructures to Airbus, including the facility in Malaysia.

Divestiture of the Malaysian site to Composites Technology Research Malaysia will introduce a new competitor into the market. EU antitrust chief Teresa Ribera said the commitments will maintain competition for commercial aircraft components.

The deal, first announced in July last year, is intended to streamline Boeing’s operations and improve quality control across its supply chain. Spirit AeroSystems, a major supplier of aerostructures for both Boeing and Airbus, has faced scrutiny over production quality in recent years.

Boeing continues to seek regulatory approval in the United States before the transaction can close. Company representatives emphasized their focus on meeting all outstanding regulatory requirements.

Spirit AeroSystems is working with both Boeing and Airbus to fulfill closing conditions. The companies expect to complete the transaction within the current quarter.

Industry stakeholders anticipate that the integration will benefit commercial aircraft manufacturers by ensuring access to competitively priced components.

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