The US corporation and the Brazilian planemaker were set to strike a $4.2 billion merger deal. Boeing would own 80% in the joint venture and 20% would be held by Embraer.
Boeing Co has terminated a merger transaction with the Brazilian aircraft manufacturer Embraer after the latter failed to arrange conditions to effectuate the tie-up, the US company said in a statement published on Boeing’s official website.
Reacting to the development, Embraer accused the US company of “wrongfully” terminating the deal and making “false claims” to end it, AFP reported.
Under the $4.2 billion deal, Boeing was supposed to buy 80% of Embraer’s commercial aircraft division. Boeing stated that it had exercised the right to reject the transaction after Embraer “failed to fulfill all the necessary conditions”.
The Brazilian manufacturer refused to extend the deadline for the transaction, which expired on 24 April.
The two companies established the partnership in February of last year. Boeing Brasil–Commercial, the proposed joint venture between the two manufacturers, was supposed to design, build, and sell commercial airliners worldwide.
Sourse: sputniknews.com
