EU approval of Boeing-Spirit merger reshapes aerospace supply chains

Spirit Aerosystems

EU approval of the Boeing-Spirit merger comes with strict divestment conditions aimed at protecting competition in aerostructures. The Boeing-Spirit merger will proceed only if Spirit’s Airbus-linked assets are sold, addressing fears of supply foreclosure. As a result, the Boeing-Spirit merger becomes a test case for balancing vertical integration with supply chain resilience in global aviation.

Divestments anchor EU green light for Boeing-Spirit merger

The European Commission cleared the $4.7bn deal on condition that Boeing divests Spirit assets serving Airbus. Regulators initially worried that the merged Boeing-Spirit entity could restrict aerostructure supply to Airbus, undermining competition in large commercial aircraft. However, those concerns eased after July 2024 agreements between Boeing, Airbus and Spirit.

Under the package, Boeing will divest all Spirit businesses that currently supply aerostructures to Airbus. Meanwhile, Spirit’s Malaysia site will be sold to Composites Technology Research Malaysia (CTRM), a regional composites specialist. The commission concluded that Airbus and CTRM can develop these units as independent, competitive suppliers.

The EU stressed that maintaining multiple aerostructure vendors is vital for long-term industrial resilience. Therefore, the remedy design ensures Airbus is not forced into dependency on a Boeing-controlled supplier. The UK Competition and Markets Authority had already cleared the deal in August, finding no credible foreclosure risk.

What the Boeing-Spirit merger means for aerostructures competition

The Boeing-Spirit merger strengthens Boeing’s control over its own fuselage and structural component supply. This vertical integration could improve cost management, quality control and schedule discipline across Boeing’s main programmes. However, regulators moved to ring-fence Airbus from that consolidation to avoid strategic vulnerability.

For Airbus, the divestments create continuity while opening the door to new industrial partnerships. As a result, the Boeing-Spirit merger may indirectly diversify Airbus’ aerostructures ecosystem, especially through CTRM’s entry. The commission expects both Airbus and CTRM to remain strong market participants rather than captive suppliers.

More broadly, the case signals that future aerospace M&A will face intense scrutiny around supply security. Policymakers now see aerostructures capacity as a strategic capability, not just a cost item. Therefore, any similar deal will likely need clear safeguards to protect rival OEMs and second-tier suppliers.

The Metalnomist Commentary

This decision underlines how competition policy is evolving toward strategic supply-chain management in aerospace. By reshaping, not blocking, the Boeing-Spirit merger, Brussels is endorsing vertical integration while firewalling a key rival’s inputs. For metals and aerostructure suppliers, the message is clear: customer concentration and OEM dependency will sit at the heart of future regulatory risk.