Boeing has cancelled its agreement to acquire 80 percent of Brazilian manufacturer Embraer’s commercial aircraft division, the company announced on Saturday morning.
Under the agreement, Boeing planned to create a joint venture by acquiring most of Embraer and its passenger aircraft division for US $4.2 billion, essentially taking over the company. This plan was first announced at Farnborough Airshow 2018 and, after some hurdles, received support from the Brazilian government in January 2019.
The deal was approved by all relevant regulatory authorities, except for the European Commission, which on Wednesday delayed a decision until August 7.
However, the agreement between the two aircraft manufacturers stated that the deal would close no later than Friday, April 24, subject to extension if both parties agreed. This was already pushed back from the original goal to finish the takeover of Embraer’s shares through Boeing during the first quarter of 2020.
In a statement, Boeing says that it has exercised its right to terminate the agreement.
The American company initially planned to integrate Embraer and its E-Jet passenger aircraft series into the Boeing brand.
Jakob Wert is an aviation journalist from Germany. He built up the website IFN.news and is the Editor-In-Chief of International Flight Network.
