Boeing’s announcement that it is terminating an agreement to join forces with Embraer has prompted an angry response from the Brazilian jet maker, which is now threatening to seek damages.
The pair had planned to work together on Embraer’s commercial aviation business and to develop new markets for its C-390 Millennium aircraft. They had been working toward an agreement for two years.
Boeing said it ended the agreement after Embraer did not meet conditions laid out by the deal, in which Boeing would have held majority ownership. Over the past few months, the companies had “productive but ultimately unsuccessful negotiations” about the unsatisfied conditions, which was “deeply disappointing,” Marc Allen, Boeing’s president of Embraer partnership and group operations, said in a news release.
Embraer issued a statement saying it “believes strongly that Boeing has wrongfully terminated” the mutual transaction agreement and “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 (master transaction agreement), because of its unwillingness to complete the transaction in light of its own financial condition and 737 Max and other business and reputational problems,” it added.
Full Content: Irish Times
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
Alaska Airlines and Hawaiian Airlines Enter Timing Agreement with DOJ
Mar 28, 2024 by
CPI
Sam Bankman-Fried Gets 25-Year Sentence for $8B Crypto Fraud
Mar 28, 2024 by
CPI
Walmart Withdraws and Refiles Antitrust Review Application for Vizio Acquisition
Mar 28, 2024 by
CPI
Apple Prevails in Dismissal of Crypto-Payment Antitrust Lawsuit
Mar 27, 2024 by
CPI
Amazon Fined in Poland for Misleading Customers
Mar 27, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Real Estate & Antitrust
Mar 27, 2024 by
CPI
Systematic National Evidence of Steering by Real Estate Agents
Mar 27, 2024 by
CPI
Compliance Now! Actionable Antitrust Advice for the Residential Real Estate Industry
Mar 27, 2024 by
CPI
Real Estate Commissions: Some Insights from the Economics of Multi-Sided Platforms
Mar 27, 2024 by
CPI
New Ideas for Promoting Real Estate Brokerage Price Competition
Mar 27, 2024 by
CPI