Bo eing uses its clout to con­trol sup­plier con­sol­i­da­tion

Metro USA (Boston) - - NEWS -

Berk­shire Hath­away’s $37 bil­lion deal for aerospace sup­plier Pre­ci­sion Cast­parts is en­cour­ag­ing in­vestors to con­sol­i­date the frag­mented air­craft com­po­nents in­dus­try, even as Boe­ing uses its clout as the world’s big­gest plane maker to put a check on some deals.

Berk­shire chief War­ren Buf­fett isn’t alone in see­ing po­ten­tial for prof­its from ris­ing de­mand for com­mer­cial air­craft. Pri­vate eq­uity and strate­gic buy­ers have been pour­ing into the sec­tor, and for­eign com­pa­nies such as China’s AVIC and Se­nior PLC of the U.K. have re­cently been prowl­ing for deals, bankers and com­pany ex­ec­u­tives said.

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