Boeing withdrew from a deal with Brazilian aircraft manufacturer Embraer, in which case an American company could gain control over the release of regional passenger airliners.
The torn general agreement provided for the creation of two joint ventures. One of them was to deal with the existing commercial aircraft production program. Boeing’s share in it would be 80%.
The role of the second enterprise was to develop sales of the medium-range military transport aircraft Embraer C-390 Millennium. The distribution of shares in this company was supposed to be 51% to 49% in favor of Embraer.
The Boeing statement emphasizes that the company worked for 2 years to finalize the transaction with Embraer and received all necessary permissions from regulators with the exception of the European Commission.
“For the past 7 months we have had productive negotiations regarding the controversial issues of the agreement, which in the end did not become successful. We have reached a point where the continuation of negotiations under this agreement does not resolve the disputed issues, ”commented Mark Allen, President of the Boeing Embraer Cooperation Unit.
Boeing and Embraer began discussing production combining as part of a joint venture after Airbus gained majority control over the production of Canadian regional Bombardier C Series aircraft.
The parties entered into the initial agreement on February 26, 2019. However, the finalization of the transaction was supposed to take place closer to mid-2020 after obtaining the approval of all regulators.