Earlier this week, Boeing Chief Executive Officer, Dennis Muilenburg, resigned as the 737 MAX crisis escalated into the new year. In the meantime, Boeing’s Board of Directors has named the current Chairman, David L. Calhoun, as new Chief Executive Officer and President. While he is still tackling the 737 MAX crisis, pressures from EU regulators about the Boeing and Embraer joint venture rises.
According to Reuters, European Union regulators are investigating the $4.2 billion tie-up; they have asked for more than 1.5 million pages of information and data, on over 20 years of sales campaigns.
The European Commission is worried that the major participants in the global aircraft market would reduce from three to two, after this deal.
Any delay or derailing of the transaction would be a further setback for Boeing.
The new CEO, David Calhoun, knows well about Embraer, from his former senior role at engine manufacturer General Electric, and is expected to push hard for the tie-up.
Boeing has agreed to acquire 80% of Embraer to compete with the Airbus’ Bombardier CSeries (now A220) deal.
US sources deny the deal would reduce the market from three to two manufacturers; saying that the mainline and regional markets are separate, even though Airbus has a foot on both sides.
The Commission and companies all declined to comment.
Max beat me to it. My first thought was that the EU did not seem to take issue when the European manufacturer bought a smaller manufacturer but does when the American firm does? That sounds like a little home cooking to favor the local team. Boeing should vigorously fight this clear favoritism.
This is F-n BS. There was no stink raised when Airbus purchased the C-series from Bombardier. Now the EU wants to investigate because of potential lack of competition? Should have thought about that before you allowed Airbus to buy the C-series. The EU knew this would happen. F-n deal with it EU!!!