Aerospace suppliers Woodward and Hexcel set plans for an all-stock merger in what executives said was a response to the rising tide of climate-change pressures facing the industry, reported the Wall Street Journal.
The US companies make parts for Airbus and Boeing jets, including the grounded 737 MAX, which Boeing halted production of this month. Woodward and Hexcel stated their merger would allow them to expand spending on research and development of more efficient engines and lightweight aircraft parts.
The combined company, which would be known as Woodward Hexcel, would rank among the aerospace industry’s largest suppliers, with combined sales of US$5.3 billion last year and 16,000 staff. The companies’ combined market capitalization is US$13.7 billion.
According to the Journal, airlines and aircraft makers are under increasing pressure to address the industry’s emissions and noise footprint. The airline industry accounts for around 2% of global greenhouse-gas emissions, but rapid traffic growth has made it a target for environmental concerns. Executives at Woodward and Hexcel said those forces drove their plans to merge.
Full Content: Wall Street Journal
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
T-Mobile’s Acquisition of Ka’ena Corporation Receives FCC Approval
Apr 26, 2024 by
CPI
UK Regulator Announces Two New Senior Executive Appointments
Apr 26, 2024 by
CPI
Paramount Global and Skydance Media Near Merger Deal, Eyeing CEO Change
Apr 26, 2024 by
CPI
BHP Unveils £31bn Mining Megamerger Proposal with Anglo American
Apr 25, 2024 by
nhoch@pymnts.com
ByteDance Prefers Shutdown Over Sale of TikTok Amid US Ban Threats
Apr 25, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI