Kristina Roberts
Britain’s competition watchdog has given the green light for Boeing to buy Spirit AeroSystems, one of the biggest makers of aircraft parts in the world. The decision was announced on Friday and means the UK does not see any major competition problems that would require a deeper investigation.
This approval is an important step for Boeing, a company that has faced several tough years marked by financial troubles, damaged public trust, and low morale among its employees. The news is expected to calm some investor worries and help Boeing move forward with its plans.
The UK’s Competition and Markets Authority, also known as the CMA, said it had looked into the deal but found no reason to push it into a more detailed “phase 2” investigation. This first phase is usually done to see if a merger or takeover could harm competition in the market. Since the CMA decided not to move forward with a longer review, it means they believe the deal will not seriously hurt other companies or customers.
The CMA began its investigation in June this year and had until August 28 to make a decision. However, the regulator gave its verdict earlier than expected. In its short statement, the CMA did not share all the details behind its reasoning but said the full decision text would be published soon.
Boeing welcomed the news. In a brief statement, the company said, “We’re pleased with the outcome and continue to work through the remaining regulatory processes.” This shows that while the UK has approved the deal, there are still more steps to go before it becomes official.
That’s because Boeing still needs approval from regulators in other parts of the world. The European Commission and the U.S. Federal Trade Commission are both reviewing the takeover. Their approval is necessary before the deal can be completed.
If all goes as planned, this deal would mark the end of nearly 20 years of Spirit AeroSystems operating as an independent company. Spirit is based in Wichita, Kansas, and is the largest standalone maker of aerostructures — these are the main parts that form the structure of an aircraft. The company makes components for many major airplane models, including Boeing’s 737 and 787, and Airbus’s A220, A320, and A350.
Joe Buccino, a spokesperson for Spirit AeroSystems, said the deal is expected to close in the fourth quarter of this year. This means Boeing could take control of the company before the year ends, as long as the other approvals go through without problems.
Alongside the takeover news, Spirit AeroSystems also announced that it had agreed to sell one of its facilities in Subang, Malaysia. The buyer is Composites Technology Research Malaysia, often called CTRM, and the sale price is $95.3 million. Once the deal is complete, CTRM will continue to supply parts for both Boeing and Airbus aircraft, including Boeing’s 737 and 787 programs, and Airbus’s A220, A320, and A350 models. Spirit said in a statement that this sale is part of its broader strategy to adjust its operations and focus on its main areas of business.
For Boeing, buying Spirit AeroSystems is not just about expanding its own production capacity — it’s also about bringing a long-time supplier back into the fold. Spirit was once part of Boeing but became an independent company in 2005. Since then, Spirit has remained one of Boeing’s biggest suppliers, providing large parts of the fuselage and other critical components for its aircraft.
Over the last few years, Boeing has been dealing with multiple challenges. From safety crises involving its 737 MAX aircraft to delays in delivering new planes, the company’s reputation has taken a hit. The COVID-19 pandemic also brought a sharp drop in air travel, hurting demand for new planes. On top of that, supply chain issues have caused further delays and added costs.
Buying Spirit AeroSystems could help Boeing strengthen its control over the production of aircraft parts and improve coordination in the supply chain. This might help reduce delays and ensure better quality control, both of which are important for regaining the trust of airlines and passengers.
For Spirit AeroSystems, becoming part of Boeing again could mean greater financial stability. The company has also faced pressures from rising costs and production issues. Being under Boeing’s ownership could allow Spirit to focus more on manufacturing without the constant pressure of operating as an independent, publicly traded company.
Still, even with UK approval, the deal faces challenges. The European Commission and the U.S. Federal Trade Commission will carefully review whether the takeover could harm competition in the aerospace industry. Regulators will look at how the merger could affect Airbus, Boeing’s main rival, since Spirit also makes parts for Airbus planes.
Some industry experts believe the deal will go through because Boeing and Spirit are already closely linked as supplier and customer. However, regulators may require certain conditions to make sure the merger does not unfairly disadvantage other companies.
The sale of the Malaysian facility is also an important part of the picture. By selling this site to CTRM, Spirit is reducing its international footprint but ensuring that Boeing and Airbus continue to get the parts they need. This could be seen as a move to avoid potential concerns from regulators about too much concentration of production in Boeing’s hands.
The takeover will also have an impact on workers. Both companies employ thousands of people, and the integration of Spirit into Boeing could lead to changes in jobs, operations, and production processes. Boeing has not yet shared detailed plans for how it will manage this transition.
In the wider aerospace industry, this takeover highlights a trend toward greater consolidation. Large companies are looking to bring more of their supply chain in-house to improve efficiency and control. However, such moves always come with the risk of reducing competition, which is why regulators around the world closely examine these deals.
For now, Boeing has cleared one important hurdle with the UK’s approval. The next steps will depend on the decisions made in Brussels and Washington, D.C. If all goes smoothly, Boeing could soon welcome Spirit AeroSystems back into its family, nearly 20 years after they parted ways.
In the fast-moving and highly competitive world of aircraft manufacturing, this merger could be a turning point for Boeing — a chance to fix past problems, strengthen its production lines, and rebuild trust with customers. But until every regulator gives the final go-ahead, the deal remains a work in progress.
