Boeing’s $4.7 Billion Acquisition Of Spirit AeroSystems May See Conditional EU Antitrust Approval: Report

Boeing Co.’s (BA) acquisition of Spirit AeroSystems Holdings Inc. (SPR) is reportedly set for a conditional antitrust approval from the European Union.

According to a Reuters report citing people familiar with the matter, the approval is based on certain remedies from Boeing to address the EU’s concerns, including the sale of some of Spirit’s businesses.

Boeing’s shares were up nearly 0.2% in Tuesday’s opening trade. Retail sentiment on Stocktwits around the company trended in the ‘neutral’ territory.

The report noted that Boeing’s remedies for the acquisition approval include the sale of Spirit’s Europe-focused businesses to Airbus, as well as the sale of its facilities in Scotland and Malaysia that support Airbus programs, and the divestment of its business in Ireland that does not support Airbus programs.

The European Commission has set October 14 as the deadline for making a decision. This comes after the U.K.’s Competition and Markets Authority cleared Boeing’s acquisition of Spirit unconditionally in August.

Boeing announced the Spirit deal last year that carved up the world’s largest aerostructures company between itself and Airbus. At the time, Boeing stated that it would assume substantially all Boeing-related commercial operations, as well as other commercial, defense, and aftermarket operations.

The aerospace giant’s acquisition of Spirit comes after a spinoff in 2005. This will bring back Spirit, a key supplier of the Boeing 737 and 787 Dreamliner, as well as other commercial jets, into Boeing’s fold at a time when the company is seeking to enhance its quality controls.

BA stock is up 25% year-to-date and 41% over the past 12 months.

Also See: Gold Prices Continue To Rise, Futures Cross $4,000 For First Time: Ray Dalio Reportedly Says It’s Like Early 1970s Again

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