Boeing announced today that their joint venture agreement with Embraer has now been terminated.
In a statement, the US manufacturer announced that Embraer had not satisfied the necessary conditions for the deal to proceed on April 24th.
Boeing explained that under the Master Transaction Agreement (MTA) April 24th was the initial termination date; if certain conditions were not met, this date could be extended. Instead, Boeing decided to terminate the MTA.
The MTA between Embraer and Boeing was to establish a new level of strategic partnership. The two parties had previously agreed to create a joint venture called Boeing Brasil; including Embraers commercial aviation business and intending to develop new markets for the KC-390 military aircraft.
“Boeing has worked diligently over more than two years to finalise its transaction with Embraer. Over the past several months, we had productive but ultimately unsuccessful negotiations about unsatisfied MTA conditions.”
said Marc Allen, president of Embraer Partnership & Group Operations.
“We all aimed to resolve those by the initial termination date, but it didn’t happen. 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.”
said Marc Allen, president of Embraer Partnership & Group Operations.
Embraer Hits Back at Boeing
Embraer issued a statement that believes strongly that Boeing has wrongfully terminated the MTA, 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 MTA, because of its unwillingness to complete the transaction in light of its own financial condition and 737 MAX and other business and reputational problems.
Embraer Statement
Embraer believes it is in full compliance with its obligations under the MTA. “It will pursue all remedies against Boeing for the damages incurred by Embraer as a result of Boeing’s wrongful termination and violation of the MTA.” from statement by Embraer.
The planned partnership between Boeing and Embraer had received unconditional approval from all necessary regulatory authorities, with the exception of the European Commission.
Article Source: Boeing, Embraer
that was the only way for Boeing to compete Airbus. Now the best way for Embraer is to see in China. Comac need for a good airplane, better than Sukhoi S100. Embraer 175 and 195 are here to complete C919 when it will be available on market.
As China built many new airports, they need for a lot of plane for local flights. It could be the best deal for Embraer to continue to build planes, for Comac to cut grass under Airbus A220 feet and for Boeing to continue the way of abyms…
A lovely aircraft series from Embraer that just like Bombardier CS series that was SO SUPERIOR to the 50 year old design that Boeing ,the ‘cheapskates’ were STILL trying to flood the market with!!
Personally i could not give a stuff as all this was from a Boeing ‘plot’, was to try and DESTROY the CS 200/300 programme with import huge tariffs in cahoots with old Orangeboy man Trump to buy and promote the OLD Boeing B737 that is crap now!!!!! Though Airbus came to the rescue and blew them out the water by total surprise as backers under the Airbus name and import duties rights etc.
This really f**ked it up with Boeing’s plot so they decided to go into partnership with Embraer to try and compete as they knew their product was bad and cheap! The fact is the E190 aircraft is great too and this just shows if Boeing just redesigned and invested in new design,what would they have created and be scared of and it was the ‘fear’ that their product was inferior and old what made them turn to ‘dirty-tatics’ i am afraid far as i am concerned! So good, i am glad their crapy B737 is stuck grounded,should have built a brand new aircraft design and you would not have these problems with the MAX as your pedaling an old design with modern electronics and it just is not working! Your fault!
As far as the pull away for Embraer, i still feel they will be alright as their little plane is quite popular and is able to compete with the A220 series from Airbus once the CS200/200 series! Personally it reminds me the E190 of the Mitsubishi design aircraft thats VERY forward thinking from Japan! ANA have a big order for it and good too,Boeing have had this market wrapped upto them selves for far too long pedaling crap old aircraft! Glad they have been taught a lesson on this and i hope the competion ,capitalises upon this! The A220 is beautiful! A4320 Neo’s have killed off the B797 idea so it just shows,laying on your laurals pedaling old stuff and relying on LOYALTY from the likes of AA and BA for same old stuff has failed!!! Inovation like their B777.B787 is what they should have done in their small aircraft division and it could have been a very different story and stopped Airbus Capitalising with American ailiners for their product over theirs! Airbus NEO’s have taken a huge chink of orders that Boeing could have has if they ha got the B797 programme off and running mid 2015 etc!