Business Boeing to cancel Brazilian acquisition of Embraer

Boeing to cancel Brazilian acquisition of Embraer

Reuters

The American “Boeing” aircraft production company

According to “Bloomberg” agency, that the American “Boeing” aircraft company, is withdrawing from a proposed deal to acquire production lines for commercial and military aircraft from the Brazilian company “Embraer SA”.

The “Boeing” group announced its withdrawal from an agreement worth 4.2 billion dollars to buy the commercial aircraft branch of its Brazilian rival “Embraer”, in a new blow to the American group that faces the Corona virus crisis and the repercussions of the 737 MAX aircraft crisis.

The two companies were supposed to set up a joint venture, under which Boeing would take a 80 percent stake in its Brazilian commercial rival, with the deal being finalized by Friday.

With this decision, more than two years of talks ended, as the aircraft market prepared to shrink due to the Corona virus pandemic.

“Bloomberg” quoted a statement by Mark Allen, head of Boeing’s Operations Department and partnering with Embraer, that a point had been reached at which negotiations that continued within the framework of the main agreement of the joint working group “MTA” would not resolve outstanding issues.

According to Bloomberg, the breakdown of the negotiations will turn the two companies into competitors, and boost Airbus’s ability in the aircraft market.

Source: “Bloomberg”

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