Boeing Co (NYSE:BA, ETR:BCO) and Airbus Group (EPA:AIR) shares rose after the pair agreeing to carve up Spirit AeroSystems, splitting key assets of the struggling aerospace supplier between them.
Under the agreement, Boeing will buy back Spirit’s US-focused operations – which it spun off two decades ago – for $4.7 billion in stock, while Airbus will absorb loss-making European activities, both companies said on Monday.
Boeing shares rose 2.3% to $182 and Airbus shares rose 3.6% to €145.6 on Monday.
As part of the agreement, Airbus receive a $439 million cash payment from Spirit and will provide $200 million in non-interest-bearing credit lines to the supplier.
The carve-up involves key plants, including Spirit’s facility in North Carolina, where it builds fuselage parts for Airbus’ giant A350, and a site in Belfast, Northern Ireland, which makes carbon wings for the A220 narrowbody.
Airbus said it will assume production of A220 wings in Belfast and wing components for the A320 and A350 programs in Prestwick. If no buyer emerges for the A220 mid-fuselage work, Airbus will also take over that production.
"With this operation, Airbus aims to ensure stability of supply for its commercial aircraft programmes through a more sustainable way forward, both operationally and financially, for key Airbus work packages," the Amsterdam-headquartered group said.
The moves come as Boeing ramps up production of its 737 MAX after a series of crises in 2024 and Spirit, which builds fuselages for the MAX, continues to face financial strain.
Spirit recently reported liquidity of $890 million but forecast up to $700 million in free cash burn in the first half of 2025.
Airbus said it expects the transaction to close in the third quarter of 2025, subject to regulatory and other customary approvals.