Choice Properties: Development Pipeline to Drive Growth

The European Union is set to approve Boeing's $4.7 billion acquisition of Spirit Aerosystems, but with conditions. The deal, which would be Boeing's largest acquisition in over two decades, is expected to be approved by EU regulators with some conditions. The acquisition would give Boeing control of Spirit's commercial aircraft production facilities, including its Wichita, Kansas factory.

The European Union is set to approve Boeing's $4.7 billion acquisition of Spirit Aerosystems, but with conditions. The deal, which would be Boeing's largest acquisition in over two decades, is expected to be approved by EU regulators with some stipulations. The acquisition would give Boeing control of Spirit's commercial aircraft production facilities, including its Wichita, Kansas factory.

Boeing's acquisition of Spirit AeroSystems was initially planned to close by July 2025 but has been delayed due to regulatory approvals from both the European Commission and the US Federal Trade Commission (FTC). The delay is primarily tied to the regulatory approvals required in Europe, where Spirit AeroSystems also produces major components for Airbus. The European Commission has pushed back its decision date to October 14, with industry experts speculating that it could be further delayed Delayed: Boeing’s Spirit AeroSystems Acquisition Now Expected To Close By Year’s End^[1].

The European Commission's decision to approve the deal with conditions is expected to ensure that Airbus, which is a major customer of Spirit AeroSystems, does not become overly dependent on Boeing. Airbus has expressed support for the deal, stating that it is taking operational preparations to take over management control of Spirit's assets related to its own programs Delayed: Boeing’s Spirit AeroSystems Acquisition Now Expected To Close By Year’s End^[1].

Boeing and Spirit AeroSystems entered into a definitive all-stock agreement on July 1, 2024, under which Boeing will acquire Spirit for an equity value of about $4.7 billion. However, the deal is not straightforward. Spirit also builds A220 wings and A350 fuselage parts, so Airbus has struck a parallel transaction to acquire those portions of Spirit that are contracted for its own production. This pragmatic compromise ensures industry balance, allowing Boeing to avoid antitrust backlash over European-bound work packages Delayed: Boeing’s Spirit AeroSystems Acquisition Now Expected To Close By Year’s End^[1].

The Boeing–Spirit AeroSystems takeover is one of the most significant aerospace consolidations in decades. It is driven by necessity, shaped by compromise, and fraught with risk. For Boeing, the deal represents a bold attempt to fix systemic supply chain problems. For Airbus, it is a defensive maneuver to protect its production from reliance on a competitor. While delayed, the deal will likely go through in the coming months, and Simple Flying will continue to bring you all the updates.