Brazilian regulatory agency approves joint venture between Embraer and Boeing
There remains only the approval by the European Commission, which has already anticipated that the decision should take a few more months to be announced
The joint venture between Boeing and Embraer has taken another step towards its effectiveness. This week, CADE, the authority responsible for mergers in Brazil, approved the strategic partnership between the two companies that will give rise to Boeing Brasil – Commercial, a subsidiary focused on the production and sale of commercial aircraft.
Brazil joins the United States, China, Japan, South Africa, Montenegro, Colombia and Kenya, which have already approved the deal. However, the most critical authority to the partnership remains, the European Commission, which brings together the countries of the European bloc and has been skeptical about the union between the two manufacturers, rivals of Airbus.
Boeing and Embraer have been in discussions with the European Commission since the end of 2018, but the commission has insisted on asking for more information, postponing its decision which is now scheduled for the end of May. As a result, the start of the partnership has been delayed, although Embraer has already separated its commercial aviation division since January 1, 2020.
“This latest approval is another validation of our partnership, which will bring greater competitiveness to the regional jet market, more value for our customers and greater opportunities for our employees,” said Marc Allen, Boeing executive who is responsible for the Embraer Partnership and Operations of the Group.
“The approval of the agreement by the Brazilian regulatory agency is a clear demonstration of the pro-competitive nature of our partnership,” said Francisco Gomes Neto, Embraer CEO and president. “The decision will not only benefit our customers, but will also allow the growth of Embraer and the Brazilian aviation industry as a whole,” he guaranteed.
Regarding the European Commission, Allen showed optimism: “in view of the favorable endorsement that we have received from our customers in Europe and the unconditional approvals from all the regulatory agencies that analyzed our transaction, we hope to receive final approval for the transaction as soon as possible”.
Boeing and Embraer officially announced their intention to create the joint venture in July 2018. Details of the deal were later announced in which the U.S. manufacturer will pay $ 4.2 billion for 80% of the company’s commercial aircraft division. Brazilian. In addition, they also became partners in the production and marketing of the C-390 Millennium, a military transport jet developed by Embraer – in this case, the division is 51% for Embraer and 49% for Boeing.