The British antitrust authority is conducting an assessment of Boeing’s $4.7 billion acquisition of Spirit AeroSystems because it was spun off nearly two decades ago to determine if the deal poses risks to market competition.
The Competition and Markets Authority (CMA) initiated a public comment period before deciding whether to start a formal investigation. The regulatory agency will evaluate if the proposed acquisition threatens competition within the U.K. and other international markets.
Boeing plans to acquire Spirit AeroSystems to achieve operational simplification and enhanced quality control after multiple years of supply chain disruptions. The Wichita-based aerostructures company received its independence through divestment in 2005 yet continues to serve as a vital supplier for Boeing commercial aircraft programs.
The acquisition deal occurs simultaneously with Airbus’s purchase of Spirit facilities which support its aircraft manufacturing operations.
The CMA’s assessment joins worldwide regulatory oversight which includes both U.S. and EU jurisdictions. The reintegration of Spirit faces scrutiny because it may limit competition between aerospace suppliers through shared manufacturing capabilities that Boeing and Airbus use.
The CMA accepts public feedback until July 15. Boeing and Spirit AeroSystems have not made any statements regarding the U.K. review process.
