Boeing acquires Spirit AeroSystems in US$4.7bn all-stock deal

Boeing announced the acquisition of its troubled supplier, Spirit AeroSystems, in an all-stock deal valued at US$4.7 billion, following extensive negotiations. This move comes as Boeing seeks to address significant safety and regulatory challenges affecting both companies.

The total value of the transaction, including Spirit’s last reported net debt, is approximately US$8.3 billion. According to Boeing, each share of Spirit common stock will be exchanged for Boeing common stock based on an exchange ratio ranging from 0.18 to 0.25, providing an equity value of about US$37.25 per share.

Additionally, Airbus will take over specific commercial work packages currently handled by Spirit with the merger’s completion. Spirit is planning to divest certain operations, including facilities in Belfast, Northern Ireland (excluding Airbus operations), Prestwick, Scotland, and Subang, Malaysia.

The deal is expected to be finalised by mid-2025.

This acquisition is part of a larger agreement between Boeing and Airbus, the leading global commercial aircraft manufacturers, to divide Spirit’s facilities. The arrangement ensures that Airbus, which also relies on Spirit for parts, does not have Boeing producing critical components for its aircraft, said a spokesperson.

“This transaction will enable us to better manage our supply chain and ensure the highest standards of safety and efficiency.”

Spirit AeroSystems, once a subsidiary of Boeing, has been a key supplier for both Boeing and Airbus. The acquisition aims to streamline operations and address the regulatory issues that have plagued both companies, reported Bangkok Post.

In related news, Finance Ministry to reassess stock holdings worth 1.19 trillion baht. A special committee has been established to assess the value of 100 stocks, valued at 30 billion baht, that the ministry holds from confiscations.

The goal is to divest underperforming assets to streamline the portfolio. Airports of Thailand (AOT) ranks highest in terms of shareholding value at 670 billion baht, followed by PTT Plc at 492 billion baht, and Thanachart Capital (TTB) at 20 billion baht.