The European Commission has approved, under the EU Merger Regulation, the creation of a joint venture by Boeing and Adient, both of the US.
The joint venture will design, develop, manufacture and sell seats for commercial aircraft. Boeing designs, manufactures and sells commercial aircraft and defence, space and security systems. Adient designs, manufactures and markets a full range of seating systems and components for passenger cars, commercial vehicles and light trucks. The Commission concluded that the proposed acquisition would raise no competition concerns. First, the overlaps between the companies’ activities are limited: Boeing does not manufacture but only resells aircraft seats on a minority of its aircrafts, while Adient is not active in the production of aircraft seating. Second, the Commission found that despite Boeing’s strong position in the manufacturing of large commercial aircraft, the transaction is unlikely to lead to competing aircraft seat suppliers being shut out from the market. The market in commercial aircraft seating is currently characterised by the presence of three large players and the transaction will lead to the creation of a new entrant in that market. The transaction was examined under the normal merger review procedure.