Boeing’s Spirit AeroSystems Deal Gets U.K. Approval. It’s Part of the Turnaround.

Boeing agreed to purchase its fuselage supplier, Spirit AeroSystems, in July 2024 as part of its efforts to improve production quality (Nick Oxford/Bloomberg)

Boeing received one regulatory approval for its acquisition of fuselage supplier Spirit AeroSystems. Closing that deal is part of the commercial jet maker’s turnaround efforts.

Shares were higher at the close Friday.

Friday, the U.K.’s Competition and Markets Authority, or CMA, “cleared the anticipated acquisition” of Spirit AeroSystems by Boeing.

Boeing agreed to purchase its fuselage supplier in July 2024 as part of its efforts to improve production quality. (The emergency door plug on a 737 MAX 9 that blew out of an Alaska Air flight in January 2024 came from Spirit AeroSystems.)

Spirit Aero was once part of Boeing. It was sold to private equity some 20 years ago and sold shares in an initial public offering in 2006 at $26. Over the years, Spirit added revenue from Airbus, which Spirit AeroSystems paid to take over facilities. That gives investors some indication of how tough things have been for Spirit AeroSystems lately.

The company reported a $480 million second-quarter operating loss on Aug. 5. Spirit AeroSystems hasn’t reported an annual operating profit since 2019.

When back with Boeing, management should be able to streamline costs and lower Spirit AeroSystems’ cost of financing. “We’re pleased with the outcome and continue to work through the remaining regulatory processes,” said Boeing in an emailed statement.

There are other approvals to receive, but the deal should close without too much drama. Boeing expects the acquisition to be wrapped up by the end of the year.

Boeing stock added 0.8%, closing at $229.12 on Friday, while the S&P 500 and Dow Jones Industrial Average rose 0.8% and 0.5%, respectively.

Coming into Friday trading, Boeing stock was up almost 30% year to date, rising as investors gained confidence in the company’s turnaround plans. In recent months, Boeing has increased 737 MAX and 787 production with the blessing of U.S. aviation regulators.

Write to Al Root at allen.root@dowjones.com