Spirit Aero's Asco Acquisition Cleared in Europe

The European Commission has cleared Spirit AeroSystems’ acquisition of Belgium’s Asco Industries nearly a year after the Wichita-based supplier to Airbus and Boeing first announced the deal. “Spirit looks forward to completing the work required for a successful closing in the weeks to come,” the company said March 20.

First announced in May 2018 following approval by U.S. regulators, the $650 million deal would have given Spirit new work on the Airbus A320 and A350 and Lockheed Martin’s F-35 Joint Strike Fighter. Five months later, Spirit announced the deal's postponement because of issues the European Commission identified during its review. 

Spirit didn’t disclose specifics, but Vertical Research Partners analyst Robert Stallard wrote in a research note Thursday, the commission worried about the combined entity controlling a dominant position in aircraft slats, and “has tied some conditions to the deal.” To alleviate the commission's concerns, Spirit agreed to eliminate its role as a commercial and technical platform for negotiations with Airbus in a joint venture named Belairbus, he added.

Spirit CEO Tom Gentile has said the deal benefits his company in terms of machining capacity and processing capabilities as it adjusts to Boeing’s higher commercial aircraft production rates.