The Federal Trade Commission (FTC) has proposed that Boeing divest specific Spirit AeroSystems assets, resolving antitrust concerns surrounding the planned Boeing-Spirit acquisition. The agency’s order clears a path for the $8.3 billion deal announced in July 2024, enabling Boeing to move forward with the acquisition of Spirit, one of the world’s largest manufacturers of aerostructures, including fuselages and wings for commercial and defense aircraft. Boeing stated it will pursue the necessary remaining steps to finalize the deal, which it views as enhancing its ability to manufacture safe, high-quality airplanes.
Addressing Antitrust Concerns
To satisfy the FTC’s mandate, Boeing must sell the Spirit businesses that supply aerostructures to rival aerospace company Airbus. Crucially, this requires the divestiture of Spirit’s aerostructures business in Subang, Malaysia, which produces critical components for both Boeing and Airbus. The agreement stipulates that this Malaysian facility must be sold to Composites Technology Research Malaysia (CTRM).
Furthermore, the finalized agreement requires Boeing to continue providing essential aerostructures and support services to its competitors, ensuring the market maintains supply chain diversity.
Protecting Aerospace Competition
An official from the FTC’s Bureau of Competition explained that the proposed divestiture acts to protect aircraft manufacturing competition across the industry. The regulatory action aims to ensure passengers and military branches maintain access to dependable aircraft manufactured with reliable components.
By preventing the newly merged entity from dominating the supply of essential parts to rivals, the commission upholds market integrity during the final stages of the Boeing-Spirit acquisition.
