Boeing’s Spirit AeroSystems Deal Expected to Close 4Q25

Britain’s Competition and Markets Authority (CMA) has approved Boeing’s US$4.7 billion all-stock acquisition of Spirit AeroSystems, choosing not to proceed with a more extensive “phase 2” antitrust investigation. Announced on July 8, the CMA’s decision followed an initial review launched in June and eliminates a major regulatory obstacle for Boeing. The full text of the ruling is expected to be published soon.

In a statement, Boeing expressed satisfaction with the outcome and noted that it is continuing to work through other regulatory processes. The deal remains under review by the European Commission and the US Federal Trade Commission (FTC), and Spirit confirmed that the transaction is still on track to close in 4Q25.

Spirit AeroSystems, the world’s largest independent manufacturer of aerostructures, was originally spun off from Boeing in 2005 to help the aircraft maker reduce debt. Since then, Spirit has remained a key supplier, producing over 70% of Boeing’s fuselages and providing major components for the 737 MAX, 787 Dreamliner, and 777X programs. 

Boeing now seeks to reintegrate Spirit in an effort to streamline production, improve quality control, and address long-standing operational issues, including the 2024 737 MAX door plug incident involving Alaska Airlines. The company projects US$1 billion in annual cost savings by 2026 from the acquisition, primarily through reduced reliance on third-party suppliers and improved production efficiency.

However, the CMA’s approval may overlook broader systemic implications. Spirit’s dual role as a supplier to both Boeing and Airbus has helped maintain balance in the aerospace supply chain. Folding Spirit into Boeing raises concerns about reduced supplier diversity and potential pricing power over critical components. 

Although Airbus has countered by acquiring Spirit’s UK-based operations—including facilities in Belfast—as part of an effort to maintain control over its supply chain, this asset split highlights a growing trend toward vertical integration. Industry analysts warn that if other manufacturers follow suit, the sector could see a wave of consolidation that limits innovation, drives up costs, and makes it harder for smaller suppliers to survive.

The acquisition comes as Boeing continues to face mounting operational and reputational challenges, including supply chain disruptions and ongoing scrutiny over aircraft safety. Reacquiring Spirit is viewed as a way to regain tighter control over production and reduce inefficiencies that have plagued its output.

Financially, Spirit has struggled in recent years, and its second-quarter results reflect continued volatility. For the period ending July 3, Spirit reported a net loss of US$631 million. This includes US$219 million in forward losses tied to key programs: US$100 million related to Airbus A220 production, US$58 million for the A350, and US$38 million for Boeing 787 components. Additionally, the company recorded a US$44 million charge for excess manufacturing capacity.

Despite these losses, Spirit's revenue rose 10% year-over-year to US$1.6 billion, driven by increased production volume. It delivered airframe packages for 430 aircraft in the quarter, including 152 Boeing 737s—up from 336 total deliveries and just 58 737s in the same period last year. Spirit’s survival in recent quarters has been aided by financial support from both Boeing and Airbus. In July, Airbus provided an additional US$94 million in aid, bringing its total support to US$152 million as Spirit prepares to divest its Airbus-related work, most of which will be transferred to the European manufacturer.