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Boeing uses clout to control supplier consolidation

Boeing can act like an unofficial regulator on aerospace mergers and acquisitions because of the "assignability clause" inserted in most of its contracts with suppliers.

New York

BERKSHIRE Hathaway Inc's US$37 billion deal for aerospace supplier Precision Castparts Corp is encouraging investors to consolidate the fragmented aircraft components industry, even as Boeing Co uses its clout as the world's biggest planemaker to put a check on some deals.