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
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