SEATTLE — This story was originally published on MyNorthwest.com
The Federal Trade Commission (FTC) has approved Boeing’s long-planned acquisition of Spirit AeroSystems two decades after it was spun off, according to The Seattle Times.
The decision was issued on Wednesday and allows the $4.7 billion all-stock merger to proceed under conditions designed to preserve competition in both the commercial and defense aviation sectors.
In a July 2024 news release, Boeing emphasized that the transaction is intended to improve manufacturing consistency and support the company’s engineering workforce.
FTC clears Boeing’s Spirit takeover under conditions safeguarding competition
Spirit, based in Wichita, Kansas, is one of Boeing’s most critical suppliers, producing the 737 MAX fuselage forward sections for all Boeing commercial jets and major wing and engine components.
Boeing’s total assumption of Spirit’s debt brings the transaction value to about $8.3 billion.
In its complaint released earlier this month, the FTC warned that the acquisition could give Boeing outsized control over an already concentrated market, one in which Boeing and Airbus deliver roughly 95% of the world’s commercial aircraft.
To mitigate those risks, the FTC is requiring Boeing to divest Spirit units that supply Airbus, including Spirit’s Malaysia operations, and to guarantee continued support for competing defense contractors.
Boeing said the FTC’s approval marks another step toward completing the deal this year.
The acquisition still needs Spirit shareholders’ approval and the completion of Airbus-related divestitures, but Boeing says the deal will likely close by mid-2025.