Boeing and Embraer receive Brazilian approval on merger
Boeing and Embraer on January 27 received unconditional approval of their strategic partnership by the Administrative Council for Economic Defense (CADE)’s General-Superintendence (SG) in Brazil. The decision will become final within the next 15 days unless a review is requested by CADE Commissioners.
Boeing explains the partnership plan with Embraer has now received unconditional clearance from every regulatory jurisdiction with the exception of the European Commission, which continues to assess the deal.
“This latest clearance is yet another endorsement of our partnership, which will bring greater competition to the regional jet marketplace, better value for our customers and opportunities for our employees,” said Marc Allen, Boeing’s president of Embraer Partnership & Group Operations.
Unconditional clearance has now been granted in Brazil, United States, China, Japan, South Africa, Montenegro, Colombia, and Kenya. Boeing and Embraer have been in discussion with the European Commission since late 2018.
The planned strategic partnership between Embraer and Boeing comprises two joint ventures: One joint venture made up of the commercial aircraft and services operations of Embraer (Boeing Brasil – Commercial) in which Boeing will own 80 per cent and Embraer will hold 20 per cent; and another joint venture to promote and develop markets for the multi-mission medium airlift C-390 Millennium (Boeing Embraer – Defense) in which Embraer will own a 51 per cent stake and Boeing will own the remaining 49 per cent.