Boeing-Spirit merger faces UK antitrust probe: Here's why the $4.7 billion deal is under lens
The deal, valued at $8.3 billion including Spirit's net debt, was announced last year. It aims to reunite the aviation giants two decades after Spirit was spun off from Boeing in 2005 to trim costs, reported Bloomberg.
The Competition and Markets Authority (CMA) has initiated a probe to determine whether the transaction poses a risk of 'substantial lessening of competition' in the UK.
This investigation is said to be a standard procedure for acquisitions of this magnitude. The inquiry 'was anticipated and is part of the normal process for acquisitions of this nature,' a Spirit spokesperson told the news agency.
The UK antitrust watchdog is expected to make a decision on whether to close the investigation or launch a more in-depth probe by August 28 of this year, it said in a notice published on Monday.
The Boeing-Spirit merger will bring a key supplier for the 737, 787 Dreamliner and other commercial jets back to Boeing.
In July 2024, Boeing announced that it is acquiring Spirit, which will include substantially all Boeing-related commercial operations, as well as additional commercial, defence and aftermarket operations.
The objective of the purchase is to streamline Boeing's operations and improve quality control, years after spinning off the key supplier, according to Reuters.
In July, former Boeing CEO Dave Calhoun told the media at the time of the acquisition announcement that the deal 'is in the best interest of the flying public, our airline customers, the employees of Spirit and Boeing, our shareholders and the country more broadly'.
As part of the transaction, Boeing was expected to work with Spirit to ensure the continuity of operations supporting Spirit's customers and programmes it acquires, including working with the US Department of Defense and Spirit's defence customers regarding defence and security missions, Boeing said in a statement.
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