UK regulator has approved Boeing’s acquisition of Spirit AeroSystems
The competition watchdog in Britain announced on Friday that it has approved Boeing’s (BA.N) planned acquisition of Spirit AeroSystems (SPR.N) after declining to conduct a thorough examination into whether the transaction would be anti-competitive.
Investors will probably find comfort in the announcement after a string of catastrophes drained Boeing’s finances, affected staff morale, and eroded public confidence.
Although it did not elaborate in its first statement, the UK’s Competition and Markets Authority (CMA) stated that, given the information at hand, the probe would not proceed to a “phase 2” stage. It stated that the entire wording of its ruling would be released soon.
The agency has to make a conclusion by August 28 after starting its preliminary probe in June.
Boeing said in a statement, “We’re happy with the result and will keep working through the remaining regulatory processes.”
The agreement would still require clearance from the U.S. Federal Trade Commission and the European Commission, ending Spirit AeroSystems’ nearly two decades of independence as the largest standalone aerostructures company in the world.
According to Spirit AeroSystems spokesperson Joe Buccino, the transaction is anticipated to finalize this year’s fourth quarter.
In addition, Spirit Aero, based in Wichita, announced late Friday that it had agreed to sell Composites Technology Research Malaysia its Subang, Malaysia, facility for $95.3 million. As a result of the agreement, Spirit said, CTRM would supply Airbus’s (AIR.PA) and Boeing’s 737 and 787 programs and open new tabs A220, A320, and A350.
In order to strengthen quality control and streamline operations, Spirit was bought back by Boeing last year in a $4.7 billion all-stock deal, years after the supplier was spun off.
A agreement was reached in April for Europe’s Airbus to purchase several of Spirit’s facilities related to its aircraft programs, and in July, Boeing agreed to take over a section of Spirit’s business in Belfast, Northern Ireland.
