Boeing uses clout to control supplier consolidation

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.

Berkshire chief Warren Buffett isn't alone in seeing potential for profits from rising demand for commercial aircraft. Private equity and strategic buyers have been pouring into the sector, and foreign companies such as China's AVIC and Senior plc of the UK have recently been prowling for deals, bankers and company executives said.