UK regulator clears Boeing takeover of Spirit AeroSystems
The news is likely to reassure investors after a series of crises depleted Boeing's finances, strained employee morale and damaged public trust
Highlights:
- Britain's CMA regulator began investigation in June
- Competition authority decides against 'phase 2' in probe
- Deal still requires approval from European and U.S. regulators
- Spirit AeroSystems to sell Malaysian facility for $95.3 million
Britain's competition regulator said on Friday it has cleared Boeing's planned acquisition of Spirit AeroSystems after deciding against an in-depth investigation into whether the deal would be anti-competitive.
The news is likely to reassure investors after a series of crises depleted Boeing's finances, strained employee morale and damaged public trust.
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The UK's Competition and Markets Authority (CMA) did not provide details in its initial statement, but said the investigation would not go to a "phase 2" stage based on available data. The full text of its decision will be published shortly, it said.
The watchdog began its initial investigation in June and had a deadline of August 28 for a decision.
"We're pleased with the outcome and continue to work through the remaining regulatory processes," Boeing said in a statement.
The deal, which marks an end to nearly two decades of independence for Spirit AeroSystems - the world's largest standalone aerostructures company, would still need approval by the European Commission and U.S. Federal Trade Commission.
Spirit AeroSystems spokesperson Joe Buccino said the deal is expected to close in the fourth quarter of this year.
Wichita-based Spirit Aero also said late on Friday it reached a deal to sell its facility in Subang, Malaysia, to Composites Technology Research Malaysia for $95.3 million. CTRM would supply Boeing's 737 and 787 programs and Airbus's (AIR.PA), opens new tab A220, A320 and A350 as a result of the deal, Spirit said in a statement.
Last year, Boeing agreed to buy back Spirit in a $4.7 billion all-stock deal to streamline its operations and improve quality control, years after spinning off the supplier.
In July, Boeing also agreed to take over a portion of Spirit's operations in Belfast, Northern Ireland, from Europe's Airbus, which in April had finalised a deal to buy several of Spirit's facilities tied to its aircraft programmes.
