After more than two years of negotiations, Boeing on Saturday terminated its proposed $4.2 billion deal to acquire the commercial jet business of Brazilian regional jet maker Embraer.
Boeing cited an inability to agree on final terms as it let a midnight Friday deadline expire: “Boeing has worked diligently over more than two years to finalize its transaction with Embraer. Over the past several months, we had productive but ultimately unsuccessful negotiations about unsatisfied MTA conditions. We all aimed to resolve those by the initial termination date, but it didn’t happen,” said Marc Allen, president of Embraer Partnership & Group Operations. “It is deeply disappointing. But we have reached a point where continued negotiation within the framework of the MTA is not going to resolve the outstanding issues.”
Embraer responds to Boeing accusation: “Embraer believes strongly that Boeing has wrongfully terminated the agreement, that it has manufactured false claims as a pretext to seek to avoid its commitments to close the transaction and pay Embraer the US$4.2 billion purchase price. We believe Boeing has engaged in a systematic pattern of delay and repeated violations of the agreement because of its unwillingness to complete the transaction in light of its own financial condition and 737 MAX and other business and reputational problems.”
Photo credit: Wikipedia/Aero Icarus
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