China has approved Boeing’s proposed acquisition of Embraer’s commercial division, removing another hurdle to a deal still under particular scrutiny by European regulators.
China has approved Boeing’s proposed acquisition of Embraer’s commercial division, removing another hurdle to a deal still under particular scrutiny by European regulators.
Embraer, based in Sao Jose dos Campos, confirms China has greenlighted the transaction, which calls for Boeing to buy 80% of Embraer’s commercial aircraft unit for $4.2 billion.
The Brazilian manufacturer would retain a 20% stake of the division, which Boeing intends to rename Boeing Brasil – Commercial.
“We have received unconditional clearance to close our transaction from almost all jurisdictions, including the United States, China and Japan,” Embraer says in a statement. “We continue to cooperate with the remaining jurisdictions as [they assess] our transaction and look forward to a positive resolution.”
The European Commission seems to be the sticking point. Several weeks ago Embraer executives announced the deal’s closing would be delayed to no sooner than March 2020 due to the Commission deciding to conduct a more-thorough review.
Embraer did not respond immediately to questions about what other regulatory approvals are outstanding, if any.
The acquisition proposal calls for Embraer’s entire commercial aircraft business to transfer into Boeing’s control, including its hugely successful E-Jet programme, commercial aircraft services and related engineering expertise.
