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Boeing to acquire Spirit AeroSystems: Boeing is set to make a USD 4.7 bn acquisition of Spirit AeroSystems through an all-stock purchase that values Spirit at USD 37.25 a share and will see Boeing take on Spirit’s reported net debt, Bloomberg reports, citing sources familiar with the matter. Boeing will also gain a portion of Spirit’s defense contract work as part of the transaction, which is set to close mid-2025. Boeing’s rival Airbus SE will also acquire some of Spirit’s operations, paying a nominal price of USD 1 for the assets and receive USD 559 mn in compensation. The move reunites Boeing with Spirit, which spun off in 2005.
A hail mary for Boeing? Integrating Spirit is expected to stabilize Boeing’s supply chain and enhance its aircraft production capabilities as well as quell US aviation regulators’ concerns about the company’s manufacturing blunders, Bloomberg writes. The transaction, however, will require approval from the Pentagon and US antitrust regulators, who are less keen on the consolidation of aerospace and defense manufacturing.
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Turkey mediating Somalia-Ethiopia talks: Turkey is mediating talks between Somalia and Ethiopia to alleviate tensions sparked by the port agreement signed between Ethiopia and the Somali breakaway region of Somaliland earlier this year, Reuters reports. The target of the negotiations is unclear and expectations for a resolution are low, unnamed officials told the newswire.
Background: Ethiopia inked an MoU with Somaliland in January to gain access to its Red Sea port of Berbera for military and commercial purposes for a period of 50 years. In exchange, Ethiopia would recognize Somaliland as independent from Somalia, which considers Somaliland a part of its territory. In response, Somalia summoned the Ethiopian ambassador to protest the move and called the agreement “null and void”.
