Spirit AeroSystems Stock Jumps on Reports Boeing Is Close to Reacquiring the Company
Bloomberg / Contributor / Getty Images
Key TakeawaysSpirit AeroSystems shares surged Friday following reports that the aerospace parts maker could soon be reacquired by Boeing.Spirit AeroSystems was spun off from Boeing in 2005, but the companies have been in talks for Boeing to reacquire it as Boeing looks to gain more control over its supply chain to address safety issues.An incident in January involving a door plug that detached from a Boeing plane in midair sparked regulatory investigations, and led Boeing to review the practices of its suppliers like Spirit AeroSystems.
Shares of aerospace parts manufacturer Spirit AeroSystems (SPR) jumped 6% Friday following reports it is nearing a deal to be reacquired by Boeing (BA), as the troubled airplane manufacturer works to gain more control of its supply chain after the highly scrutinized January incident in which a door plug detached from a Boeing plane in midair.Talks for Boeing to retake control of Spirit, which it spun off in 2005, have hit some obstacles. Airbus, Boeing's top competitor, made threats of blocking any deal that would involve Boeing taking over the parts of Spirit's operations that manufacture parts for Airbus, which would put Boeing in control of a segment of its competitor's supply chain, according to Reuters.Negotiations With Boeing, Airbus Reportedly ProgressingThe sides have progressed through talks to divide up Spirit's business into three portions, which would allow Boeing and Airbus to each acquire the parts of Spirit's business that supply parts for their planes, along with a separate piece of the remaining operations that may be sold separately, Reuters reported.Boeing has been in talks to reacquire Spirit since earlier this year, amid regulatory scrutiny and investigations into their safety and production practices related to the January incident.There is no specific timeline for the deal currently, but Reuters reported that the deal could be finalized within days or weeks, citing one source that said the Airbus portion of the deal would likely be completed before the company's earnings report next month. The Financial Times reported Friday that the deal could be announced as soon as next week as the sides work to finalize a "complex agreement."Boeing CEO Dave Calhoun faced questions from a Senate committee earlier this week on how Boeing has handled safety since a pair of crashes in 2018 and 2019 that killed more than 300 passengers and crew, and allegations from whistleblowers that the company has favored profits over the highest safety standards.Spirit AeroSystems shares finished 6% higher at $33.56 Friday, extending gains earlier in the week. They've climbed about 5.6% for 2024 so far. Boeing shares were little changed Friday, and have lost nearly one-third of their value since the start of the year. Read the original article on Investopedia.
Welcome to Billionaire Club Co LLC, your gateway to a brand-new social media experience! Sign up today and dive into over 10,000 fresh daily articles and videos curated just for your enjoyment. Enjoy the ad free experience, unlimited content interactions, and get that coveted blue check verification—all for just $1 a month!
Account Frozen
Your account is frozen. You can still view content but cannot interact with it.
Please go to your settings to update your account status.
Open Profile Settings