US aircraft maker Boeing will not take over Brazilian rival Embraer. The purchase of four-fifths of Embraer’s commercial aircraft business for 4.2 billion dollars failed, Boeing said.
In two years of negotiations, it was ultimately not possible to agree on the terms of the takeover, said Boeing’s manager Marc Allen. This was “deeply disappointing.”
Embraer announced that he would seek damages. Boeing wants to get out of the purchase agreement because of home-made problems and uses alleged inconsistencies as a pretext, Embraer said in response to Boeing’s statement. The company spoke of an unlawful termination of the purchase agreement.
The competition authorities had gradually waved through the deal, with the exception of the European Commission, which had recently examined it. The purchase would have incorporated Boeing’s range of smaller aircraft. This would have strengthened the US in competition with European rival Airbus.
Boeing did not mention the Corona crisis in the report. But it is clear that the crisis is causing a lot of hit-and-run for aircraft manufacturers, with uncertain long-term consequences. In addition, Boeing has a big problem with the 737 Max. The model has been banned from taking off worldwide since two plane crashes. Boeing will release its quarterly results on April 29.