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.

Source Fool.com