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Boeing terminates joint venture agreement with Brazil’s Embraer

Trade News by Trade News
April 25, 2020
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Boeing terminates joint venture agreement with Brazil’s Embraer
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An Embraer E195 jet airliner on display at the 2019 Paris Air Show opened at Le Bourget Airport.

Marina Lystseva | TASS | Getty Images

Boeing has ended more than two years of tie-up talks for a $4.2 billion commercial jet deal with Brazil’s Embraer, the latest derailment at the aerospace giant.

“It is deeply disappointing. But we have reached a point where continued negotiation within the framework of the [merger transaction agreement] is not going to resolve the outstanding issues,” said Marc Allen, president of the Embraer Partnership and Group Operations, in a Boeing news release. Embraer did not immediately respond to a request for comment.

The deal was meant to help Boeing grow even stronger in commercial aerospace to better compete with European rival Airbus. Airbus, for its part, has already taken a stake in what’s now called the A220 passenger-plane program of Canada’s Bombardier.

The collapse of the Boeing-Embraer deal comes as the aerospace industry is in crisis because of…



Source cnbc.com

Tags: agreementBoeingBrazilsEmbraerjointterminatesventure
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