Dec 15 1996
From The Space Library
The Boeing Company and the McDonnell Douglas Corporation announced that McDonnell Douglas would merge with Boeing in a stock-for-stock transaction. The merger, the biggest in aerospace history, positioned Boeing to compete with Europe's Airbus Industrie for nearly all commercial airline contracts. The merger also strengthened Boeing's position as one of the most influential companies, both domestically and internationally, in the United States. The US$13.3 billion deal would place under a single umbrella nearly 200,000 employees, producing annual revenues in excess of US$48 billion. The Boeing Company also emerged from the deal with improved chances of winning major military contracts, whereas, previously, the company had few ventures involving the military aerospace industry. However, McDonnell Douglas had been the main supplier to the military of F/A-18 and F-15 Eagle-model fighter jets to the military. Thus, the merger brought together leaders in the commercial and military sectors of the aerospace industry, creating what one industry analyst called an "800-pound gorilla." McDonnell Douglas stock rose 20 percent on the first day of trading following the announcement.
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