By Katherine Hamilton
Boeing is being asked to divest Spirit AeroSystems assets to resolve antitrust concerns around its proposed acquisition of the aircraft-parts maker.
The Federal Trade Commission said Wednesday it is asking Boeing to divest Spirit businesses that supply products to Airbus, as well as Spirit's Malaysian aerostructures business Subang.
Airbus would buy the businesses that supply it products, and Malaysian aerospace company Composites Technology Research Malaysia would buy Subang, the FTC said.
The FTC ordered Boeing to provide transitional services to the two buyers.
The regulator is also asking Boeing and Spirit to continue providing parts and services to competing contractors for military aircraft programs.
The order is an effort to protect competition in the large commercial and military aircraft markets, as Boeing is working to close an $8.3 billion acquisition of Spirit, the FTC said.
Boeing is one of the world's largest aircraft makers and Spirit is the world's largest independent supplier of aerostructures, such as wings and aircraft bodies.
The divestitures would resolve FTC allegations that the proposed acquisition would allow Boeing to raise costs or make it more difficult for rival Airbus to compete, the regulator said.
The FTC's order is similar to conditions proposed by the European Union when it approved the acquisition in October. As part of their approval, EU regulators said Boeing had offered to sell the Airbus-supplier business and Subang.
The EU officials said the proposed divestments fully addressed their concerns about the acquisition stifling competition.
Write to Katherine Hamilton at katherine.hamilton@wsj.com
(END) Dow Jones Newswires
12-03-25 1302ET
