Brussels, August 29 - Boeing has formally requested approval from the European Union to reacquire Spirit AeroSystems, the world’s largest standalone aerostructures manufacturer, in a deal valued at approximately $4.7 billion in stock. According to documents published on the European Commission’s website, the transaction, announced in July 2024, aims to reintegrate Spirit AeroSystems, a former Boeing subsidiary spun off in 2005, to enhance control over its supply chain and improve production stability. The deal, which includes Spirit’s net debt, brings the total transaction value to about $8.3 billion. As part of the arrangement, Airbus, Boeing’s European rival, will assume control of Spirit’s loss-making operations focused on European markets, particularly those supporting Airbus aircraft production. The European Commission is set to review the acquisition to assess potential competition concerns within the EU, with a decision expected by September 30, 2025. This move follows the United Kingdom’s Competition and Markets Authority (CMA) approval earlier in August 2025, which cleared the deal after determining it would not significantly reduce competition in the UK market.
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The acquisition represents a strategic shift for Boeing, reversing its decision nearly two decades ago to outsource key component production to reduce costs. Spirit AeroSystems, a critical supplier, manufactures essential parts such as fuselages for Boeing’s 737 Max and components for the 787 Dreamliner, while also supplying parts for Airbus aircraft. Boeing’s decision to reacquire Spirit is driven by its need to address ongoing operational challenges, including supply chain disruptions and heightened scrutiny over aircraft safety following incidents like the January 2024 Alaska Airlines 737 MAX 9 door panel blowout. By bringing Spirit back in-house, Boeing aims to streamline its production processes, align safety and quality management systems, and reduce reliance on third-party suppliers. The company projects annual cost savings of approximately $1 billion by 2026, primarily through improved production efficiency and reduced external supplier costs. Additionally, the deal includes Boeing’s commitment to coordinate with Spirit to ensure continuity for defense and security programs, supporting critical contracts with the U.S. Department of Defense and other clients.
For Airbus, the agreement involves acquiring Spirit’s Europe-focused operations, including facilities in Belfast, Northern Ireland, and other sites producing components for Airbus’s A220 and A350 aircraft. This transfer is expected to bolster Airbus’s supply chain stability by bringing critical manufacturing capabilities under its direct control. The deal requires Spirit to divest certain operations, such as those in Subang, Malaysia, and Prestwick, Scotland, to Airbus, ensuring a smooth transition of Airbus-related production. Both companies have provided financial support to Spirit in recent years, with Airbus contributing $152 million to stabilize the supplier amid financial struggles, including a reported net loss of $631 million in the second quarter of 2024. The acquisition’s structure, with Spirit shareholders receiving Boeing stock at an exchange ratio based on a $37.25 per share valuation, reflects the complex financial and regulatory considerations involved in the transaction.
The deal still faces regulatory hurdles, including approval from the U.S. Federal Trade Commission, which has requested additional information from both Boeing and Spirit. The European Commission’s review will focus on whether the acquisition could harm competition within the EU’s aerospace sector, given Spirit’s role as a key supplier to both Boeing and Airbus. The transaction is expected to close in the fourth quarter of 2025, pending the completion of Airbus’s acquisition of Spirit’s European operations and other regulatory approvals. This acquisition marks a significant step in Boeing’s efforts to address operational inefficiencies and restore confidence in its manufacturing processes, while Airbus strengthens its supply chain resilience, reshaping the competitive dynamics of the global aerospace industry.