The announcement of the break-up of the joint venture between Boeing and Embraer was barely released and the two companies have already begun to mutually accuse each other for the failure of the deal.
Hours after being surprised by the Boeing statement, which blamed it for failing to meet the conditions necessary to consolidate the dealings, Embraer issued a harsh note in which it accused the US company of “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.”
For the Brazilian company, 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 also promises to pursue all remedies against Boeing for the damages incurred by Embraer as a result of Boeing’s wrongful termination and violation of the MTA (Master Transaction Agreement).
The company, which celebrated its 50th anniversary in 2019, also says that it will overcome this sad moment as it is a successful, efficient and diversified company: “Our history of over 50 years is lined with many victories but also some difficult moments. All of them were overcome. And that’s exactly what we are going to do again. Overcome these challenges with strength and determination,” concludes the statement.
The company’s CEO, Francisco Gomes Neto, also regretted Boeing’s decision, but confirmed that Embraer will seek compensation. According to rumors, there would be $100 million breakup fee, but the amount would have been considered low by the Brazilian company, which only in 2019 accused a loss related to the partnership of $87 million.