Boeing’s $4.7 Billion Spirit AeroSystems Acquisition Clears UK Regulator

Britain’s Competition and Markets Authority (CMA) has approved Boeing’s $4.7 billion all-stock acquisition of Spirit AeroSystems, opting not to pursue a more extensive phase 2 antitrust investigation. The CMA’s decision, announced on July 8 following an initial review launched in June, removes a key regulatory hurdle for Boeing. The full ruling is expected to be published soon.

Boeing welcomed the CMA’s approval and stated that it continues to engage with other regulatory bodies. The deal remains under review by the European Commission and the U.S. Federal Trade Commission (FTC). Spirit AeroSystems confirmed the transaction is still expected to close in the fourth quarter of 2025.

Spirit AeroSystems, the world’s largest independent aerostructures manufacturer, was spun off from Boeing in 2005 as part of a debt-reduction strategy. Since then, Spirit has remained a critical supplier, producing more than 70% of Boeing’s fuselages and contributing major components for the 737 MAX, 787 Dreamliner, and 777X programs.

Boeing aims to reintegrate Spirit to streamline production, enhance quality control, and address long-standing operational challenges—including the 2024 737 MAX door plug incident involving Alaska Airlines. The company projects $1 billion in annual cost savings by 2026, driven by reduced reliance on third-party suppliers and improved manufacturing efficiency.

Despite the CMA’s green light, concerns remain over the broader industry impact. Spirit’s dual role as a supplier to both Boeing and Airbus has helped maintain balance in the aerospace supply chain. Consolidating Spirit under Boeing could reduce supplier diversity and increase pricing power over critical components.

To counter this shift, Airbus has agreed to acquire Spirit’s UK-based operations, including facilities in Belfast, to retain control over its supply chain. This asset split underscores a growing trend toward vertical integration. Industry analysts caution that further consolidation could stifle innovation, raise costs, and threaten the viability of smaller suppliers.

The acquisition comes amid Boeing’s ongoing operational and reputational struggles, including supply chain disruptions and heightened scrutiny over aircraft safety. Reacquiring Spirit is seen as a strategic move to regain control over production and address inefficiencies that have hindered output.

Spirit AeroSystems has faced financial turbulence in recent years. For the second quarter ending July 3, the company reported a net loss of $631 million, including $219 million in forward losses tied to key programs: $100 million for Airbus A220 production, $58 million for the A350, and $38 million for Boeing 787 components. An additional $44 million charge was recorded for excess manufacturing capacity.

Despite these losses, Spirit’s revenue rose 10% year-over-year to $1.6 billion, driven by increased production volume. The company delivered airframe packages for 430 aircraft in the quarter, including 152 Boeing 737s—up from 336 total deliveries and just 58 737s in the same period last year. Spirit’s recent survival has been supported by financial aid from both Boeing and Airbus. In July, Airbus provided an additional $94 million, bringing its total support to $152 million as Spirit prepares to divest its Airbus-related work to the European manufacturer.

Sources: AirGuide Business airguide.info, bing.com, mexicobusiness.news