Boeing has announced that it has stopped its planned strategic partnership with Embraer and terminated its Master Transaction Agreement (MTA) with the Brazilian aircraft manufacturer.
The joint venture would have seen “Boeing Brazil – Commercial” created, with Boeing expected to own 80% of the new company, with Embraer having the remaining 20%.
By the end of 2019, all the appropriate governing bodies had approved the merger, with only the European Commission holding up proceedings, but it was due to approve the process shortly.
Now Boeing in a press statement has revealed that: “Embraer did not satisfy the necessary conditions.”
“Over the past several months, we had productive but ultimately unsuccessful negotiations about unsatisfied MTA conditions. We aimed to resolve those by the initial termination date, but it didn’t happen,” said Marc Allen, Boeing’s President of Embraer Partnership & Group Operations.
However, Embraer has a different view on the agreement and confirmed that it received a notice of termination of the MTA.
The Brazilian aircraft manufacturer said it had achieved all of the conditions required by 24 April, and believes Boeing “wrongfully terminated the MTA, that it has manufactured false claims as a pretext to seek and avoid its commitments to close the transaction and pay Embraer the US$4.2 billion purchase price.”
Embraer claims Boeing is at fault in delaying the transaction because of its financial situation with the 737 MAX grounding and the damage it has caused to the company’s reputation.
