Boeing and Embraer have secured approval of their planned partnership from authorities in Brazil.
The latest approval for the pair’s two proposed joint ventures comes from Brazil’s Council for Economic Defense (CADE). It follows clearance from jurisdictions such as the USA, China, Japan, South Africa, Montenegro, Colombia, and Kenya. Only the European Commission has yet to approve it.
“Boeing and Embraer welcome the unconditional approval of their strategic partnership by the Administrative Council for Economic Defense (CADE)’s General-Superintendence (SG) in Brazil,” says Marc Allen, Boeing’s president of Embraer partnership & group operations.
The decision is final in 15 days, unless CADE commissioners request a review. As for the European Commission, discussions have been underway since 2018.
The pact envisages the two companies forming two joint ventures. One will comprise commercial aircraft and services, with Boeing holding 80% and Embraer 20%.
The other joint venture will develop markets for Embraer’s C-390 Millennium tactical transport, in which Embraer will own 51% and Boeing 49%.
“We have been productively engaged with the [European] Commission to demonstrate the pro-competitive nature of our planned partnership, and we look forward to a positive outcome,” adds Allen.
“Given the positive endorsement we’ve seen from customers across Europe and the unconditional clearance we’ve received from every other regulator who has considered the transaction, we look forward to securing final approval for the transaction as soon as possible.”
In November 2019, the European Commission “stopped the clock” on its investigation of the planned tie-up, contending that the two manufacturers had not submitted requested information.
“This procedure in merger investigations is activated if the parties fail to provide, in a timely fashion, important information that the Commission has requested from them,” it said.
The Commission’s in-depth review of the deal was prompted about concerns in the single-aisle aircraft market, particularly in the 100-150 seat segment.
