The European Commission stated that Boeing’s remedies “fully address the competition concerns” that it identified.
Boeing Co.’s (BA) acquisition of Spirit AeroSystems Holdings Inc. (SPR) received approval from the European Union on Tuesday, conditional upon full compliance with the commitments offered by the companies.
The European Commission noted that Boeing had offered to divest all of Spirit’s businesses that supply aerostructures to Airbus, including assets and personnel, to the latter. In addition to this, the aerospace giant also offered to divest Spirit’s Malaysian business that sells supplies to Airbus, to Malacca, Malaysia-based Composites Technology Research Malaysia.
The European Commission stated that Boeing’s remedies “fully address the competition concerns” that it identified. “They will enable Airbus to integrate Spirit’s businesses that currently supply aerostructures to Airbus into Airbus’ own operations, and hence secure its supply chain. Also, they will allow a new competitive force, CTRM (Composites Technology Research Malaysia), to enter the market for aerostructures,” it added.
Boeing’s shares were up nearly 0.4% in Tuesday morning’s trade. Retail sentiment on Stocktwits around the company trended in the ‘bullish’ territory.
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