HXL - Here's Why 2 Big Boeing Suppliers Just Called Off Their $6 Billion Merger
Back in January, aerospace suppliers Woodward (NASDAQ: WWD) and Hexcel (NYSE: HXL), facing increasing competition and pressure due to the grounding of Boeing's (NYSE: BA) 737 MAX, announced plans to combine in a $6.4 billion merger. Fast-forward three months: The 737 MAX is way down on the list of issues aerospace suppliers are facing, and the two companies are calling off the deal.
In a joint statement released on Monday, Woodward and Hexcel said they have decided to terminate their all-stock merger "in response to the increasing impact on both the aerospace and industrial sectors, and global markets broadly" due to the COVID-19 pandemic.
"The pandemic has resulted in a need for each company to focus on its respective businesses and has impacted the companies' ability to realize the benefits of the merger during these unprecedented times," they said.