EU antitrust regulators should block Boeing’s US$4.2 billion (£3.27 billion) purchase of Embraer’s commercial passenger jet division or demand hefty concessions, the head of Brazilian investor group Abradin said, calling it a killer acquisition.
Aurelio Valporto complained about the deal to the European Commission two months ago, saying it created hurdles to competition in the Brazilian aerospace industry, and on Wednesday, December 4, took his grievance to Brazil’s antitrust watchdog CADE. Abradin represents minority investors.
Boeing is buying 80% of Embraer’s commercial jets division, its most profitable, to compete directly with Airbus in the market for planes with fewer than 150 seats, reported EuroNews.
“It is a killer acquisition, not a joint venture,” Valporto said in an interview late Wednesday, referring to deals where companies buy smaller rivals to shut them down, an issue troubling competition enforcers on both sides of the Atlantic.
“Embraer airplanes are competitors of Boeing airplanes. What will be left from Embraer won’t survive, and even if it was possible to survive, Embraer wouldn’t be able to produce any aircraft with 50 passengers or more,” Valporto said.
The deal has already been approved by regulators in the United States, China, and Japan.
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
FTC Urged to Enforce Rarely Used Antitrust Law Against Retail Giants
Mar 28, 2024 by
CPI
UK’s Fingleton Bolsters Team with New Additions
Mar 28, 2024 by
CPI
Britain’s Competition Regulator Clears Aviva’s Acquisition of AIG Life UK
Mar 28, 2024 by
CPI
White House Implements New AI Safeguards to Protect Rights and Safety
Mar 28, 2024 by
CPI
Denver Court Sets August Date for Kroger-Albertsons Merger Showdown
Mar 28, 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