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Why Boeing Company Stock Is Falling Today? - Spirit AeroSystems Hldgs (NYSE:SPR), Boeing (NYSE:BA)
The Federal Trade Commission requires Boeing to divest assets supplying Airbus and maintain commitments to competitors to address antitrust concerns in an $8.3 billion merger.
- On Dec. 2, the Federal Trade Commission filed a complaint, and on Wednesday, a U.S. regulator said it would require Boeing to divest significant Spirit AeroSystems assets to proceed under conditions.
- Boeing and Airbus account for 95% of commercial aircraft deliveries, leaving few supplier options, and the Federal Trade Commission argued Boeing could unfairly harm rivals by denying parts, noting new competitors would face extreme costs.
- The FTC's consent order requires Boeing to divest Spirit AeroSystems units supplying Airbus SE and Spirit's Malaysia aerostructures facility, provide transitional services to Airbus SE and Composites Technology Research Malaysia, and appoint an FTC-appointed monitor to oversee compliance.
- A 30-day public comment period begins, the Federal Trade Commission said Boeing Company and Spirit AeroSystems may close the deal before divestitures, and Boeing's shares fell 3.2% intraday.
- The Federal Trade Commission warned this could affect defense contracting and government costs, arguing it might push contractors to raise prices or invest less, while the European Union antitrust division approved the deal after similar divestments.
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Why Boeing Company Stock Is Falling Today? - Spirit AeroSystems Hldgs (NYSE:SPR), Boeing (NYSE:BA)
Boeing Company (NYSE:BA) shares slid on Wednesday after the Federal Trade Commission ordered the company to divest substantial assets of Spirit Aerosystems Holdings, Inc. (NYSE:SPR). The goal is to address antitrust concerns over Boeing's $8.3 billion proposed acquisition of Spirit's aerostructures business, per a report from the Federal Trade Commission. What's Required Under the FTC's consent order, Boeing must sell Spirit businesses that supp…
·New York, United States
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Coverage Details
Total News Sources15
Leaning Left3Leaning Right0Center3Last UpdatedBias Distribution50% Left, 50% Center
Bias Distribution
- 50% of the sources lean Left, 50% of the sources are Center
50% Center
L 50%
C 50%
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