HOUSTON, December 8th (Argus) - Aircraft manufacturer Boeing has completed the $4.7 billion acquisition of aerospace structure manufacturer Spirit Aviation Systems, ending the re-integration of its former subsidiary, which included government-authorized divestiture and other requirements.
Boeing said on Monday that this move will bring all of Spirit's production-related business related to Boeing under the company's umbrella, while expanding its after-sales services through Spirit's maintenance and leasing operations. Last week, Boeing received conditional approval from the US Federal Trade Commission, clearing the final hurdles for the transaction, which depends on the company meeting certain conditions to address antitrust concerns.
These measures include establishing Spirit Defense as an independent supplier in the defense industry and ensuring that the company complies with existing agreements with military contractors. Due to financial considerations, Boeing plans to have Spirit Defense as a non-integrated subsidiary of the company's defense department, but notes that it will "maintain independent governance and operations."
The company said on Monday that Boeing will also operate its production in Belfast, Northern Ireland, under the Short Brothers brand as an independent subsidiary.
According to the regulations of the European Commission, Airbus will take over all related business of Spirit, focusing on providing aircraft projects for the aerospace manufacturer, while the base of Spirit in Sibu, Malaysia, will belong to the aerospace composite materials supplier, Malaysia Composite Technology Research Corporation.
Boeing and Spirit initiated acquisition negotiations in March 2024 and reached an agreement in July of the same year. The two companies have been working to address increasingly strict reviews of their quality control processes, which were previously limited due to the explosion of an air panel on the Boeing flagship 737 MAX project and exacerbated Spirit Aviation's financial difficulties.
Since then, regulatory authorities have lifted production restrictions, paving the way for Boeing to increase the production of the 737 MAX to more than 38 aircraft per month, as Boeing's goal is to increase production speed to clear the inventory backlog in the coming decade.
