Boeing Scraps Plans to Buy Embraer Commercial Jets Division

Reuters reported that Boeing scrapped its plan to purchase Embraer’s commercial jets division for $42. billion.

The deal, announced in 2018, called for an implementation agreement to be reached between the two aircraft manufacturers over the weekend, according to Reuters.

The Brazilian aircraft manufacturer issued a statement that said, “Embraer believes strongly that Boeing has wrongfully terminated the [agreement], that it has manufactured false claims as a pretext to seek to avoid its commitments to close the transaction and pay Embraer the $4.2 billion purchase price. We believe 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 is set to receive a $100 million fee in connection with the Boeing breakup, but Reuters reported that the Brazilian company is prepared to take the case to court.






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