Yahoo Finance Boeing nearing deal with Spirit AeroSystems after prolonged negotiations - report
Investing.com - Boeing (NYSE:BA) is reportedly close to finalizing an agreement to repurchase Spirit AeroSystems (NYSE:SPR), its former subsidiary.
The deal comes after Spirit AeroSystems made significant strides in separate discussions with Airbus over a transatlantic breakup of the beleaguered supplier, according to Reuters.
Spirit shares rose 4% in premarket trade.
Boeing, earlier this year, began negotiations to repurchase the Wichita, Kansas-based supplier that it had spun off in 2005. The move was aimed at stabilizing a critical part of the supply chain for its best-selling jet after a mid-air blow out on a new 737 MAX in January.
However, the talks hit a roadblock due to Spirit's work for Airbus. The European group had threatened to obstruct any deal that involved Boeing manufacturing parts for its latest models.
Boeing and Airbus have managed to divide Spirit's programs into work that Boeing will reclaim, along with work that Airbus, the European planemaker rival, will take over. A third category of programs might be sold or handled separately, one source added.
While the exact timing of the deal remains uncertain, sources suggest it could be finalized within days or weeks, barring any last-minute complications.
Airbus, previously seen as the main obstacle to a deal, is reportedly making "good progress" in its discussions with Spirit. One source indicated that an agreement over Spirit's Airbus-related assets is more likely than not before Airbus' mid-year earnings in July.
In April, Airbus CEO Guillaume Faury hinted that Airbus might take over Spirit's operations for the A350, its top long-haul jet, and the smaller A220.
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