Post by andypspotter on Apr 25, 2020 19:44:19 GMT
Boeing has abandoned its plans for a tie-up with Embraer, exercising its right to terminate the agreement for joint commercial and military aviation ventures.
The US airframer says its master transaction agreement with the Brazilian manufacturer had reached its initial termination date on 24 April.
This was subject to extension by either side if certain conditions were met.But Boeing says it has exercised its rights to terminate after Embraer “did not satisfy the necessary conditions”.
The tie-up – which followed in the wake of Airbus’s acquisition of the Bombardier CSeries – would have created a joint venture with Embraer’s commercial aircraft business as well as one focused on the C-390 military airlifter.
Boeing says it has “worked diligently” over the past two years to finalise a transaction with Embraer.
“Over the past several months, we had productive but ultimately unsuccessful negotiations about unsatisfied [transaction agreement] conditions,” says president of Embraer partnership and group operations Marc Allen.
“We all aimed to resolve those by the initial termination date, but it didn’t happen. It is deeply disappointing.
“But we have reached a point where continued negotiation within the framework of the [agreement] is not going to resolve the outstanding issues.”
The planned partnership had received unconditional approval from all necessary regulatory authorities, with the exception of the European Commission.
Boeing and Embraer will maintain their previous agreement to jointly market and support the C-390.
The US airframer says its master transaction agreement with the Brazilian manufacturer had reached its initial termination date on 24 April.
This was subject to extension by either side if certain conditions were met.But Boeing says it has exercised its rights to terminate after Embraer “did not satisfy the necessary conditions”.
The tie-up – which followed in the wake of Airbus’s acquisition of the Bombardier CSeries – would have created a joint venture with Embraer’s commercial aircraft business as well as one focused on the C-390 military airlifter.
Boeing says it has “worked diligently” over the past two years to finalise a transaction with Embraer.
“Over the past several months, we had productive but ultimately unsuccessful negotiations about unsatisfied [transaction agreement] conditions,” says president of Embraer partnership and group operations Marc Allen.
“We all aimed to resolve those by the initial termination date, but it didn’t happen. It is deeply disappointing.
“But we have reached a point where continued negotiation within the framework of the [agreement] is not going to resolve the outstanding issues.”
The planned partnership had received unconditional approval from all necessary regulatory authorities, with the exception of the European Commission.
Boeing and Embraer will maintain their previous agreement to jointly market and support the C-390.