Why Boeing-Spirit AeroSystems deal is 'the right move,' analyst says

Why Boeing-Spirit AeroSystems deal is 'the right move,' analyst says

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Boeing (BA) has been in talks to acquire Spirit AeroSystems (SPR), a move aimed at increasing oversight of the company's manufacturing processes in the wake of a January safety incident. Stifel Research Analyst Bert Subin joins Yahoo Finance Live to discuss why he believes this potential acquisition is "the right move."

Subin characterizes the potential acquisition as a "reabsorption of a supplier," noting that it is unlikely to raise significant antitrust concerns with the Federal Trade Commission (FTC). 

The analyst further acknowledges the presence of a "risk premium" built into Boeing's stock due to the uncertainty surrounding its production processes. He suggests that the acquisition of Spirit AeroSystems could help restore investor confidence in the stock.

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Editor's note: This article was written by Angel Smith