To compete in the fierce and expanding world market after World War II, the company decided to develop an airliner, powered by turbojets, with enough range to cross the North Atlantic. Boeing bought McDD also to prevent them from joining forces with Airbus. Announced in mid-December 1996, the Boeing-McDonnell Douglas deal took until August 1997 to clear regulatory hurdles in America and Europe. In 1997, Boeing acquired the still ambulatory corpse of McDonnell Douglas for about $12 billion in stock. McDonnell -Douglas merged with Boeing in 1997. He was referring to an order Boeing had secured four decades earlier. The Ascent is The Motley Fool's new personal finance brand devoted to helping you live a richer life. Executives of both Boeing and McDonnell Douglas, in fact, make no secret that one motivation for the merger with McDonnell Douglas is to have … Value of the transaction is $16.3 billion.

> Why did Boeing buy McDonnell-Douglas? There was also the FAA’s grounding in 2013 of the Boeing 787 Dreamliner, which was forced to address malfunctions in its lithium-ion batteries. ... started to shift after Boeing bought their rival McDonnell Douglas in 1997, … Following Boeing's 1996 acquisition of Rockwell's North American division, McDonnell Douglas merged with Boeing in August 1997 in a US$13 billion stock swap, with Boeing as the surviving company. For Boeing, the deal provides a defense business balance to a company that had been weighted heavily toward the commercial side, a factor that explained the choice of Washington to make the announcement. Boeing is a major contractor in the Air Force F-22 while McDonnell Douglas is building the upgraded Navy F-18 fighter. Originally known as the MD-95, the Boeing 717 was first delivered in 1999 and designed for the 100-seat market. Was it really necessary to add the second part to explain why the merger occured? The Boeing Company today announced that appropriate merger filings have been submitted to the State of Maryland and that the merger of Boeing and McDonnell Douglas will become effective at 12:01 a.m. (Eastern Daylight Time) on Aug. 1, 1997. ... market with its 1996 purchase of McDonnell Douglas. More unexpectedly, it took its culture and strategy from McDonnell Douglas—even its commercial aviation department was struggling to retain customers . What Boeing really wanted was the defence arm of McDonnell, including fighter aircraft like F16, military transporters like C-17, and a whole host of other small weapons platforms. [1] [57] Boeing adopted the modified version of the McDonnell Douglas logo, which showed the globe being encircled in tribute to the first aerial circumnavigation which was accomplished in 1924 by Douglas … In fact, the 717 wasn’t actually built by Boeing. The October flight ended KLM’s 80-year relationship with McDonnell Douglas, which merged with Boeing in 1997. Because the airplane manufacturing industry is consolidating, and Boeing is pursuing profit at the expense of human lives. The Boeing Co. and McDonnell Douglas Corp. announced on Sunday that they plan to merge in a deal valued at $13.3 billion that will create the largest aerospace company in the world. Just as many cultures have creation myths, Douglas embraced this story of original sin. They were, at the time, working on a deal to develop the A3XX together as well as several other projects. The resulting giant took Boeing’s name.

I n 1996, Boeing acquired Rockwell, a smaller aerospace and … While Boeing was successfully selling military aircraft, its commercial products lagged behind those of rivals Douglas and Lockheed.