SAO PAULO/PARIS (Reuters) – Boeing Co ( BA.N) on Saturday took out of a $4.2 billion deal to purchase Embraer’s ( EMBR3.SA) commercial jets department, triggering a furious reaction from its jilted partner and leaving plans for a U.S.-Brazil alliance from local jets to jumbos in tatters.
FILE IMAGE: The Boeing logo design is imagined at the Latin American Company Aviation Conference & Exhibit fair (LABACE) at Congonhas Airport in Sao Paulo, Brazil August 14,2018 REUTERS/Paulo Whitaker/File Image
The collapse, initially reported by Reuters, came hours after a midnight deadline ended without any arrangement on how to carry out a deal very first aired in 2018, partly in reaction to a similar Canadian acquisition by Europe’s Airbus ( AIR.PA).
Boeing accused Embraer of failing to satisfy conditions for closing the transaction, but Embraer said Boeing had actually torpedoed it due to the fact that of larger financial issues it deals with as a result of the coronavirus crisis and the grounding of its 737 MAX.
” Embraer thinks strongly that Boeing has wrongfully ended the (arrangement,)” the Brazilian company said.
Boeing struck a more emollient tone but behind the scenes, both sides were bracing for months of argument over the break up.
” Over the past several months, we had productive however eventually unsuccessful settlements … We all aimed to resolve those by the initial