Conditionally Approved Boeing Is Allowed to Repurchase Spirit Aerosystems Under Restrictions

Source: dpa 1 min Reading Time

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As is now being reported, the EU Commission has approved the purchase of the U.S. supplier and fuselage supplier Spirit Aerosystems by the aircraft manufacturer Boeing under conditions ...

A look into fuselage manufacturing at Spirit Aerosystems. Boeing once spun off the company. The wish for a repurchase, expressed some time ago, has now been granted by the EU Commission – however, Boeing must show a certain level of concession ...(Image: Spirit Aerosystems)
A look into fuselage manufacturing at Spirit Aerosystems. Boeing once spun off the company. The wish for a repurchase, expressed some time ago, has now been granted by the EU Commission – however, Boeing must show a certain level of concession ...
(Image: Spirit Aerosystems)

The plan to bring the fuselage supplier Spirit Aerosystems largely back under Boeing's corporate umbrella became known about a year ago. The US company is paying the purchase price in the form of shares. The EU Commission has now announced that Boeing must, among other things, sell all business units of the manufacturer of aircraft parts to Airbus that currently supply the European Boeing competitor with airplane structures. This is intended to ensure competition in the aircraft parts market if Boeing takes over Spirit Aerosystems. According to the Commission's assessment, the original takeover plans would have significantly impaired competition in terms of aircraft structures and large commercial aircraft.

Airbus Is Protected from Too Much Boeing Power

Boeing would have been enabled to cut Airbus off from important supplies or otherwise disadvantage it without these limits. Additionally, the company would have gained access to confidential business information of the European rival. It was, therefore, clear even before the EU Commission's now-announced decision that parts of Spirit would transition to Airbus. According to Boeing, Spirit was valued at approximately $4.7 billion in the deal. The aircraft manufacturer also announced that it would take over around $3.6 billion in Spirit's debt. The original spin-off of the division from Boeing followed the trend at the time of streamlining corporations and saving money by shifting activities to suppliers.

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