Mike Stone, Allison Lampert and Tim Hefer
(Reuters) – Boeing (NYSE:) is close to a deal to buy out Spirit AeroSystems (NYSE:) after its former subsidiary made significant progress in separate talks with Airbus over the transatlantic breakup of the struggling supplier, people familiar with the matter said. question. Thursday.
Earlier this year, Boeing began talks to buy out the Wichita, Kansas-based supplier it spun off in 2005 as it seeks to stabilize a key part of the supply chain for its best-selling plane following a mid-air crash on the new 737 MAX. in January. However, talks have stalled over Spirit’s work for Airbus, with the European group threatening to block any deal that would involve Boeing producing parts for its latest models.
Boeing and Airbus have generally succeeded in dividing the Spirit programs into work that Boeing will take over and work that the planemaker’s European rival Airbus will take over. There is a third category of programs that could be sold or considered separately, one of the sources said.
The exact timing of the deal is unclear, but sources said it could happen within days or weeks, barring last-minute hurdles.
All the sources spoke on condition of anonymity due to the sensitivity of the negotiations.
Airbus, widely seen as the main stumbling block to the deal, is seeing “good progress” in negotiations with Spirit, a source familiar with the matter said. A deal for Spirit’s Airbus-related assets is likely to happen before Airbus’s half-year earnings in July, a second source said.
Boeing declined to comment. Spirit spokesman Joe Buccino would not comment specifically on the negotiations, saying “we remain focused on providing the highest quality products to our customers.”
In April, Airbus Chief Executive Guillaume Faury told Reuters it was “very likely” that Airbus would take over the Spirit A350, its flagship long-haul aircraft whose upper mid-fuselage is built in Kinston, North Carolina, and the smaller A220. whose wings are manufactured at the Spirit factory in Belfast, Northern Ireland.
Airbus and Boeing were working to overcome problems with inventory costs and contract values, two of the sources said.
An Airbus spokesman said the company is in discussions “with Spirit AeroSystems to protect the sources of our programs and determine a more sustainable path forward, both operationally and financially, for the various Airbus work packages for which Spirit AeroSystems is today responsible.”