EU Commission Approves Boeing's Purchase of Spirit AeroSystems

The European Commission has approved Boeing's planned acquisition of Spirit AeroSystems Holdings, but the approval is contingent on Boeing fulfilling certain commitments to protect competition.

Competition Concerns Addressed

The Commission initially expressed concerns that the merger could negatively impact competition in the global aircraft structure and large passenger aircraft manufacturing markets. Spirit AeroSystems is a major industrial company supplying airframes and structural components to manufacturers such as Boeing and Airbus.

As a result of the Commission's review, it was determined that the merger contained the following risks:

• The possibility that Boeing may restrict or reduce Spirit's supplies to Airbus,
• The risk that Boeing could gain access to commercially sensitive Airbus information through Spirit.

Boeing Makes Sales Commitment to Airbus and CTRM

To address these concerns, Boeing has made two key commitments:

• Transferring all of Spirit's business units supplying parts to Airbus, along with related assets and employees, to Airbus,
• Selling the Spirit manufacturing facility in Malaysia, along with its division that also supplies parts to Airbus, to Composites Technology Research Malaysia Sdn. Bhd. (CTRM).

The Commission stated that these structural measures completely eliminate the risks to competition. This will enable Airbus to integrate the Spirit divisions it will acquire into its own production network, ensuring supply chain continuity.

Airbus and CTRM Approved as “Suitable Acquirers”

Following market testing, the Commission determined that Airbus and CTRM were suitable buyers for the units in question. It emphasized that both companies are independent of Boeing and Spirit, have financial strength, and possess industry experience.

The process is under commission supervision

The merger will officially take effect provided Boeing fully complies with its commitments. The European Commission will closely monitor implementation of the obligations through an independent trustee.

This decision is considered the most critical approval from Europe in Boeing's process of reacquiring Spirit AeroSystems.