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US aircraft maker Boeing does not want to take over Brazilian rival Embraer.
The purchase of four-fifths of Embraer’s commercial jet business for $ 4.2 billion failed, Boeing said Saturday.
After more than two years of negotiations, Boeing and Embraer had “ultimately unsuccessful” negotiations over the terms of the acquisition, Boeing manager Marc Allen said. This is “deeply disappointing”.
Embraer announced legal action against Boeing’s withdrawal. Boeing wants to exit the purchase deal due to household problems and uses alleged discrepancies as an excuse, Embraer said in response to Boeing’s statement. Embraer would take “all measures” against Boeing for the damage caused by the “illegal” termination of the purchase agreement.
Regulators had rejected the deal, with the exception of the European Commission, which had recently examined it. With the purchase, Boeing would have incorporated Embraer’s smaller range of aircraft. That would have weakened its European rival Airbus (Airbus SE (ex EADS)).
Boeing does not mention the crown crisis in the report. But it is clear that the virus is severely affecting the business of aircraft manufacturers, with uncertain long-term consequences. For Boeing there is also the problem with the 737 Max. The model has been banned worldwide since two plane crashes.
There were recently rumors that Boeing plans to cut production of its long-distance 787 Dreamliner in half and cut jobs there. Boeing presents its quarterly results on April 29.
Boeing shares lost 0.23 percent on the New York Stock Exchange and ended Monday trading at $ 28.68.
/ fba
CHICAGO (dpa-AFX)
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