Boeing’s $4.7 Billion Spirit AeroSystems Deal Faces U.K. Antitrust Probe
The investigation adds a regulatory hurdle to the jet maker’s efforts to take control of Spirit’s operations and stabilize its supply chain
- U.K. antitrust regulators are investigating Boeing’s proposed acquisition of Spirit AeroSystems.
- The probe could delay or prevent the $4.7 billion deal, intended to improve Boeing’s manufacturing safety and quality.
- Spirit, formerly part of Boeing, has faced quality issues, impacting Boeing’s production and supply chain.
U.K. antitrust officials said they were investigating Boeing’s BA 5.91%increase; green up pointing triangle deal to acquire fuselage maker Spirit AeroSystems SPR 3.82%increase; green up pointing triangle, a move that threatens to delay or quash a takeover that could improve the safety and quality of Boeing’s manufacturing.
The Competition and Markets Authority launched an initial review last week to assess whether the deal could stifle competition in the U.K. Officials have now opted to open the first phase of a formal investigation, with a decision due by Aug. 28 on whether to escalate the case for a more in-depth probe.
Boeing agreed to acquire Spirit in July 2024 in a roughly $4.7 billion deal that included substantially all Boeing-related commercial operations as well as commercial, defense and aftermarket operations. Boeing executives have said they believe taking control of Spirit’s operations would improve the safety and quality of its manufacturing.
Spirit, which split off from Boeing about two decades ago, has been at the center of quality issues affecting 737 MAX jets. Spirit’s factory in Wichita, Kan., made the fuselage involved in last year’s Alaska Airlines door-plug blowout.
Boeing and Spirit didn’t respond to requests for comment. The launch of an antitrust investigation in the U.K. adds a regulatory hurdle to the jet maker’s efforts to take control of Spirit’s operations and stabilize its supply chain.
Much of the aviation industry has been grappling with supply-chain snags since the pandemic. Suppliers have struggled to provide parts in a timely fashion, including engines, fuselage structures, seats and interiors, making it difficult for jet makers to assemble their aircraft.
Challenges at Spirit have been affecting Boeing for years. Production snafus and quality lapses at the supplier slowed assembly at Boeing.
Guillaume Faury, chief executive of Boeing’s European rival Airbus, said earlier this year that supply-chain hurdles, including from Spirit, were putting pressure on plans to ramp up production of its A220 narrow-body and A350 wide-body aircraft.
Airbus has also been forced to delay the entry into service of the A350 freighter variant to the second half of 2027 from 2026 previously.
Like Boeing, Airbus struck its own deal to take over some Spirit operations that make parts for its jets in the U.S., Europe and Africa, moving to take direct control of production.