European competition regulators have cleared Boeing’s proposed acquisition of Spirit AeroSystems, after accepting the divestment of activities related to Airbus aerostructures.
Airbus has already planned to take over various aerostructure operations performed by Spirit, including the US-based manufacture of A350 centre fuselages and the production of A220 wings in Northern Ireland.
Boeing had also offered to divest Spirit’s Malaysia-based division in Subang, and an agreement was disclosed in August to sell it to composites specialist CTRM.
“These structural commitments fully address the competition concerns identified,” says the European Commission.
“They will enable Airbus to integrate Spirit’s businesses that currently supply aerostructures to Airbus into Airbus’ own operations, and hence secure its supply chain.”
It adds that the divestments allow CTRM to become a “new competitive force” in the aerostructures sector.
The Commission had initially been concerned that the Boeing acquisition would have reduced competition in the aerostructures market, giving the US airframer “the ability and the incentive” to “deteriorate” the supply conditions to other manufacturers – notably principal rival Airbus.
It also felt that Boeing could take advantage of commercially-sensitive information relating to Airbus.
But divestment of the Airbus-related activities had been part of the strategy from the early stages of the acquisition plan, as revealed in mid-2024.
At the time Airbus – which was preparing to pick up the primary work packages – had been prepared to step in to pick up other Spirit operations, including those in Scotland and Malaysia, if third-party buyers could not be found.
The Commission says that the divestment remedies have received “positive feedback”, and the regulator has concluded that the Boeing transaction, as a result, will “no longer raise competition concerns”.
It adds that an independent trustee will be appointed to supervise the situation and monitor implementation of the remedies.
Divestment of the Airbus-related business was central to the UK competition regulator’s similar approval of the Boeing acquisition, earlier this year.
European competition regulators have cleared Boeing’s proposed acquisition of Spirit AeroSystems, after accepting the divestment of activities related to Airbus aerostructures.
Airbus has already planned to take over various aerostructure operations performed by Spirit, including the US-based manufacture of A350 centre fuselages and the production of A220 wings in Northern Ireland.
Boeing had also offered to divest Spirit’s Malaysia-based division in Subang, and an agreement was disclosed in August to sell it to composites specialist CTRM.
“These structural commitments fully address the competition concerns identified,” says the European Commission.
“They will enable Airbus to integrate Spirit’s businesses that currently supply aerostructures to Airbus into Airbus’ own operations, and hence secure its supply chain.”
It adds that the divestments allow CTRM to become a “new competitive force” in the aerostructures sector.
The Commission had initially been concerned that the Boeing acquisition would have reduced competition in the aerostructures market, giving the US airframer “the ability and the incentive” to “deteriorate” the supply conditions to other manufacturers – notably principal rival Airbus.
It also felt that Boeing could take advantage of commercially-sensitive information relating to Airbus.
But divestment of the Airbus-related activities had been part of the strategy from the early stages of the acquisition plan, as revealed in mid-2024.
At the time Airbus – which was preparing to pick up the primary work packages – had been prepared to step in to pick up other Spirit operations, including those in Scotland and Malaysia, if third-party buyers could not be found.
The Commission says that the divestment remedies have received “positive feedback”, and the regulator has concluded that the Boeing transaction, as a result, will “no longer raise competition concerns”.
It adds that an independent trustee will be appointed to supervise the situation and monitor implementation of the remedies.
Divestment of the Airbus-related business was central to the UK competition regulator’s similar approval of the Boeing acquisition, earlier this year.
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