Boeing’s US$4.7 billion Spirit deal faces UK antitrust probe

[NEW YORK] Boeing’s US$4.7 billion deal to buy Spirit AeroSystems Holdings will face UK antitrust investigation, the country’s antitrust watchdog said.

The Competition and Markets Authority will decide whether the deal raises the risk of substantial lessening of competition in the UK. Boeing announced the deal last year with the total transaction value of US$8.3 billion, that included Spirit’s net debt.

The CMA will make a decision to close the investigation or launch a deeper probe by August 28, it said in a notice published on Monday (Jun 30). 

The inquiry “was anticipated and is part of the normal process for acquisitions of this nature,” a Spirit spokesperson said. Boeing’s spokesperson didn’t immediately respond to a request for comment.

The transaction, once completed, will reunite the firms two decades after Spirit was spun off in 2005 to trim costs. The merger will bring a key supplier for the 737, 787 Dreamliner and other commercial jets back to Boeing. BLOOMBERG