Boeing Considered Takeover Talks with Spirit Aerosystems

Boeing in Takeover Talks with Spirit Aerosystems Amid Safety Concerns

Boeing, the American aerospace giant, is currently in discussions to acquire Spirit Aerosystems, a major global air parts supplier. Spirit Aerosystems, which was spun out of Boeing in 2005, continues to heavily rely on its former parent company for more than two-thirds of its business.

The takeover talks come at a time when Boeing is facing increased scrutiny over a recent manufacturing issue. In January, a piece of one of Boeing’s planes blew off mid-air, prompting a review by the US government. The investigation found that bolts meant to fasten the panel had been removed at Boeing’s Washington factory without being re-installed. Spirit had manufactured the piece before it was sent to Boeing for final assembly.

As a result of the incident, the Federal Aviation Administration (FAA) has given Boeing 90 days to develop a comprehensive action plan to improve its safety management systems. Boeing has been working closely with Spirit to address quality issues that have caused delays in plane deliveries.

Following reports of the takeover talks, shares in Spirit Aerosystems surged by more than 10%, pushing the company’s market value over $3.7 billion. In contrast, Boeing’s shares fell more than 1% after news of the discussions.

In addition to the potential takeover, Spirit Aerosystems is reportedly considering selling its Northern Irish unit to Airbus. This move could further shake up the aerospace industry and have lasting implications for both Boeing and Spirit Aerosystems.

As the negotiations continue, stakeholders are closely watching to see how this potential acquisition will impact the future of both companies and the broader aviation industry. Stay tuned for more updates on this developing story.