Shares of Spirit AeroSystems Holdings Inc. (AERO) rose 1.7% in morning trading Tuesday, after the aircraft components maker indicated that its acquisition of Asco Industries NV parent S.R.I.F N.V. may be terminated. The acquisition, which was announced in May 2018 ( ) for $650 million in cash, and was lowered to $420 million in October 2019 ( ), has a termination date of Oct. 1, 2020. "As of September 22, 2020, the conditions to the Asco Acquisition have not been satisfied and the Company does not expect to extend the Asco End Date," Spirit AeroSystems disclosed in an SEC filing. "One of the remaining conditions includes the European Commission's approval (the "EC Condition") to close the transaction in accordance with the commitments made by the parties. As of September 22, 2020, the Company's management believes it is unlikely that the EC Condition will be satisfied by the Asco End Date." Separately, Spirit said it expects its backlog to decline throughout 2020 due to cancellations related to the COVID-19 pandemic, and the pandemic may delay the time in which the company expects to realize value from its backlog. The company said there are indications that some customers are deferring or canceling orders for Boeing Co.'s (BA) 737 MAX, based on the prolonged grounding and given COVID-19-related depressed demand. Spirit's stock has tumbled 72.7% year to date, while the S&P 500 has gained 1.8%.
-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
September 22, 2020 10:08 ET (14:08 GMT)
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