Boeing Co. (NYSE:BA) is reportedly close to finalizing a deal to reacquire Spirit AeroSystems Holdings Inc. (NYSE:SPR), its former subsidiary, following significant progress in separate negotiations between Spirit and Airbus SE (OTC:EADSY) to divide Spirit’s projects between the two aerospace giants.

Boeing initiated talks earlier this year to buy back Spirit AeroSystems, aiming to stabilize its supply chain after a mid-air blowout on a 737 MAX in January.

While the exact timing remains uncertain, a deal could be reached within days or weeks, reported Reuters.

The negotiations faced challenges due to Spirit’s ongoing work with Airbus. However, Boeing and Airbus have managed to partition Spirit’s programs, ensuring both companies’ needs are met, per the report.

Airbus, previously seen as a major obstacle, is reportedly making “good progress” in its discussions with Spirit.

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Spirit AeroSystems, under financial strain, reported cash used in operations of $416 million vs. $46 million a year ago and the free cash outflow of $444 million, which was impacted by Boeing 737 production disruptions and delivery delays. 

Boeing’s interest in reacquiring Spirit is partly driven by concerns over the supplier’s financial stability and the need for investment in digital production systems.

Airbus CEO Guillaume Faury indicated that it is “not unlikely” that Airbus might take over Spirit’s operations for key projects like the A350 and A220. The report mentioned that Airbus and Boeing have been addressing issues related to inventory costs and contract valuations.

Boeing stock has lost more than 16% in the last 12 months. Investors can gain exposure to the stock via IShares U.S. Aerospace & Defense ETF (BATS:ITA) and Invesco Aerospace & Defense ETF (NYSE:PPA).

Price Action: BA shares are trading lower by 0.31% at $175.75, while SPR is up 4.23% at $33.00 in premarket at last check Friday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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