Boeing nearing deal with Spirit AeroSystems after prolonged negotiations

Published 20/06/2024, 23:04
© Reuters.
- - Boeing (NYSE:BA) is reportedly close to finalizing an agreement to repurchase Spirit AeroSystems, its former subsidiary.

The deal comes after Spirit AeroSystems made significant strides in separate discussions with Airbus over a transatlantic breakup of the beleaguered supplier, according to insiders familiar with the matter.

Boeing, earlier this year, began negotiations to repurchase the Wichita, Kansas-based supplier that it had spun off in 2005. The move was aimed at stabilizing a critical part of the supply chain for its best-selling jet after a mid-air blow out on a new 737 MAX in January.

However, the talks hit a roadblock due to Spirit's work for Airbus. The European group had threatened to obstruct any deal that involved Boeing manufacturing parts for its latest models.

⚠️Track your favorite companies with InvestingPro! CLICK HERE to take advantage and accelerate your investments!⚠️

Boeing and Airbus have managed to divide Spirit's programs into work that Boeing will reclaim, along with work that Airbus, the European planemaker rival, will take over. A third category of programs might be sold or handled separately, one source added.

While the exact timing of the deal remains uncertain, sources suggest it could be finalized within days or weeks, barring any last-minute complications.

Airbus, previously seen as the main obstacle to a deal, is reportedly making "good progress" in its discussions with Spirit. One source indicated that an agreement over Spirit's Airbus-related assets is more likely than not before Airbus' mid-year earnings in July.

In April, Airbus CEO Guillaume Faury hinted that Airbus might take over Spirit's operations for the A350, its top long-haul jet, and the smaller A220.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.