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Reuters
The American aircraft production company “Boeing”
According to the agency “Bloomberg”, the American aircraft company “Boeing” withdraws from a proposed agreement to acquire production lines for commercial and military aircraft from the Brazilian company “Embraer SA”.
The “Boeing” group announced its withdrawal from a $ 4.2 billion deal to buy the commercial aircraft branch of its Brazilian rival “Embraer” in a further blow to the US group facing the Corona virus crisis and the repercussions of the 737 MAX aircraft crisis.
The two companies were supposed to establish a joint venture, under which Boeing would take an 80 percent stake in its rival Brazilian commercial activities, with the deal finalized on 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” cited a statement by Mark Allen, head of Boeing’s Operations Department and in association with Embraer, that a point had been reached at which negotiations were continuing under the joint working group agreement of the MTA would not solve the outstanding problems.
According to Bloomberg, the breakdown of the negotiations will make the two companies into competitors and increase Airbus’ capacity in the aircraft market.
Source: “Bloomberg”
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