Spirit AeroSystems: UK Regulator Probes Boeing Acquisition

The UK Competition & Markets Authority (CMA) has initiated a phase 1 investigation into Boeing’s proposed acquisition of Spirit AeroSystems, an aerostructures supplier. Initially announced as under review on 26 June, a formal probe has now begun to understand if the merger could substantially lessen competition in the sector. Spirit AeroSystems, although primarily operating in the US, manages two sites in the UK, located in Prestwick, Scotland, and Belfast, Northern Ireland. While Boeing targets improving supply chain resilience by acquiring Spirit, complications arise due to Airbus taking control of parts of the operations, prominently the Belfast unit producing wings for the A220. The phase 1 inquiry will determine if there's a need for a more in-depth phase 2 review, with a decision expected by 28 August. This process may include measures from the companies to avoid extending to a phase 2 examination, which would last at least 28 weeks. Originally, Boeing aimed to finalize the acquisition by 1 July.