Boeing’s plan to bring Spirit AeroSystems back under its umbrella has hit a significant regulatory obstacle. The Federal Trade Commission (FTC) has ruled that Boeing must divest some of Spirit’s key operations in order to proceed with the $8.3 billion acquisition. The commission emphasized that Boeing taking control of Spirit could give it excessive dominance over critical aerostructures and weaken competition among rival manufacturers.
These divestments will include Spirit’s facility in Subang, Malaysia, which supplies important composite components to both Boeing and Airbus. Boeing will also be required to provide transition support for the new owners and ensure that Spirit continues serving military programs until suitable alternatives are secured.
For Boeing, this decision complicates the merger it hoped to complete by the end of the year. The company sees Spirit as a crucial piece in stabilizing production and improving quality, but regulators stress that the merger must not harm competition.
