Boeing takeover talks for Spirit Aerosystems hit shares

Boeing, under pressure over its manufacturing, is reportedly in takeover talks for Spirit Aerosystems.
Boeing takeover talks for Spirit Aerosystems hit shares
Boeing 737 Max 8 aircraft outside the company's manufacturing facility in Renton, Washington, US, on Sunday, Jan. 7, 2024.Getty Images

Boeing shares have slipped after reports it was in talks to take over Spirit Aerosystems, the supplier that has been involved in many of its recent manufacturing issues.

The company, a major global air parts supplier, was spun out of Boeing in 2005 as part of a cost-cutting drive.

It continues to rely on Boeing for more than two-thirds of its business.

Boeing has been under pressure over its manufacturing pipeline after a piece of one of its planes blew off in mid-air.

The US government’s review of the January blowout found that bolts meant to fasten the panel were removed at Boeing’s factory in Washington, apparently to fix damaged rivets, and were never re-installed.

The piece had been made by Spirit, before being sent to Boeing for final assembly.

This week, the Federal Aviation Administration (FAA), which has been examining Boeing since the incident, gave Boeing 90 days to develop a “comprehensive action plan” for improving its safety management systems.

Boeing has already been working closely with Spirit to address a spate of quality issues, which have caused delays to plane deliveries and led to the appointment of a new chief executive at Spirit last year.

Following reports of takeover talks,shares in the supplier jumped by more than 10% on Friday, giving it a market value of more than $3.7bn.

A spokesman for Boeing, which saw it shares slide more than 1%, said the firm did not “have anything to add” when asked about the discussions, which were first reported in the Wall Street Journal.

Spirit, which the Journal said was also considering a sale of its Irish unit to Airbus, did not respond to the BBC’s request for comment.

Spirit employs more than 20,600 people around the world, including about 3,400 in Belfast and 1,120 in Prestwick.

Source: bbc.co.uk

Total
0
Shares
Leave a Reply

Your email address will not be published. Required fields are marked *

Prev
Binance: Nigeria orders cryptocurrency firm to pay $10bn
Binance: Nigeria orders cryptocurrency firm to pay $10bn

Binance: Nigeria orders cryptocurrency firm to pay $10bn

The government blames Binance for the recent collapse of the naira, and has

Next
Why this won’t be the Budget that Jeremy Hunt wanted
Why this won't be the Budget that Jeremy Hunt wanted

Why this won’t be the Budget that Jeremy Hunt wanted

An economy in recession and high borrowing costs mean there will not be a bumper

You May Also Like