The US aircraft manufacturer Boeing does not want to take over the Brazilian rival Embraer.
–
The purchase of four fifths of Embraer’s commercial aircraft business for $ 4.2 billion failed, Boeing said on Saturday.
After more than two years of negotiations, Boeing and Embraer had “ultimately unsuccessful” negotiations on the terms of the takeover, said Boeing manager Marc Allen. This is “deeply disappointing”.
Embraer announced legal action against Boeing’s withdrawal. Boeing wants to get out of the purchase agreement due to homemade problems and uses alleged discrepancies as an excuse, Embraer said in response to Boeing’s statement. Embraer would take “all measures” against Boeing for the damage caused by the “unlawful” termination of the purchase agreement.
The regulators had waved the deal through, with the exception of the European Commission, which had recently examined it. With the purchase, Boeing would have incorporated Embraer’s range of smaller aircraft. That would have weakened European rival Airbus (Airbus SE (ex EADS)).
Boeing does not mention the corona crisis in the report. But it is clear that the virus is severely affecting the aircraft manufacturers’ business, with uncertain long-term consequences. For Boeing there is also the problem with the 737 Max. The model has been banned worldwide since two plane crashes.
Recently there were rumors that Boeing plans to cut the production of its long-haul 787 Dreamliner in half and cut jobs there. Boeing presents its quarterly results on April 29.
Boing stock was up 1.73 percent more at $ 131.07 in pre-exchange trading on the NYSE. After a green start, the share quickly fell by around two percent. A discount of 0.39 percent to $ 128.51 is now on the board.
/ fba
CHICAGO (dpa-AFX)
– .
