Boeing's $4.7 Billion Spirit Deal Cleared in EU, With Conditions -- Update

Dow Jones
Oct 15
 

By Edith Hancock and Mauro Orru

 

The European Union cleared Boeing's roughly $4.7 billion deal to acquire Spirit AeroSystems Holdings after the jet maker offered to sell some Spirit operations in an effort to ease competition concerns.

The announcement comes more than a year after Boeing agreed to buy the fuselage maker in a deal that included Boeing-related commercial operations as well as commercial, defense and aftermarket operations.

EU officials said they had concerns that the transaction in its original form might have stifled competition in the global markets for aerostructures and large commercial aircraft to the detriment of Boeing's European archrival, Airbus.

The European Commission, the EU's executive arm, said Tuesday that Boeing had offered to sell all Spirit's businesses that currently supply Airbus with aerostructures to Airbus itself, while Spirit's site in Malaysia that supplies Airbus with aerostructures will be sold to Composites Technology Research Malaysia.

A Boeing spokesperson said the company welcomed the EU's approval of the deal, which remains subject to the company selling the proposed assets.

"We are committed to fulfilling the remaining regulatory approvals and closing conditions necessary to complete this acquisition, which will further strengthen our ability to manufacture safe, high-quality airplanes for our customers and benefit the flying public," Boeing's spokesperson said.

Spirit's factory in Wichita, Kan., made the fuselage involved in last year's Alaska Airlines door-plug blowout. Boeing executives have said they believe taking control of Spirit's operations would improve the safety and quality of its manufacturing.

EU officials said the proposed divestments fully address their concerns since Airbus will be able to integrate Spirit's businesses that currently supply its aerostructures into its operations. Airbus struck its own deal earlier this year to take over some Spirit assets that make parts for its jets in the U.S., Europe and Africa.

"We had concerns that by acquiring Spirit, Boeing would have an incentive to stop or limit supplies to its competitor, Airbus," Teresa Ribera, the EU top competition enforcer, said. "Boeing's commitments will preserve competition in this crucial market and enable the entry of a new rival, and ensure commercial aircraft makers get the parts they need at competitive prices."

Boeing notified the commission of the deal in late August, triggering the EU's merger screening process. Companies can submit so-called remedies such as divesting business units or making investment commitments over a set period to alleviate competition concerns and earn antitrust approval.

The conditional green light from the EU comes two months after the U.K.'s Competition and Markets Authority cleared the transaction.

 

Write to Edith Hancock at edith.hancock@wsj.com and Mauro Orru at mauro.orru@wsj.com

 

(END) Dow Jones Newswires

October 14, 2025 12:28 ET (16:28 GMT)

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