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NEW YORK: Boeing announced Saturday that it would withdraw from a $ 4.2 billion deal to acquire the commercial aircraft division of its Brazilian rival Embraer.
The companies had planned to form a joint venture in which Boeing would take an 80 percent stake in that division. The deal was due to end no later than Friday.
But Boeing said Saturday that it was exercising its right to withdraw from a preliminary agreement reached in July 2018. It said in a statement, “Embraer did not meet the necessary conditions.”
“Boeing has worked diligently for more than two years to finalize its transaction with Embraer,” said Marc Allen, the Boeing executive who led the joint venture plan.
He said that in recent months the companies have had extensive conversations about what he calls unsatisfied conditions in the initial agreement.
“We all aim to solve them before the initial completion date, but it didn’t happen,” Allen said, without explaining what the unsolved problems were.
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The companies had planned to form a joint venture in which Boeing would take an 80 percent stake in that division. The deal was due to end no later than Friday.
But Boeing said Saturday that it was exercising its right to withdraw from a preliminary agreement reached in July 2018. It said in a statement, “Embraer did not meet the necessary conditions.”
“Boeing has worked diligently for more than two years to finalize its transaction with Embraer,” said Marc Allen, the Boeing executive who led the joint venture plan.
He said that in recent months the companies have had extensive conversations about what he calls unsatisfied conditions in the initial agreement.
“We all aim to solve them before the initial completion date, but it didn’t happen,” Allen said, without explaining what the unsolved problems were.
