Boeing merged with McDonnell Douglas in 1997 to create the world’s largest aerospace company at the time.
Boeing was already a leading commercial-aircraft manufacturer, while McDonnell Douglas had major commercial, military, and space businesses. The transaction combined Boeing’s 737 and 777 programs with McDonnell Douglas aircraft such as the MD-80 and MD-11.
The merger was valued at approximately $13.3 billion and closed on August 1, 1997. Boeing retained its name and headquarters in Seattle, while McDonnell Douglas chairman Harry Stonecipher became Boeing’s president and chief operating officer.
The deal strengthened Boeing’s defense business as well as its commercial-aircraft position. It also left Boeing as the dominant U.S. rival to Europe’s Airbus in large commercial aircraft.