Boeing Embraer Agreement

Boeing and Embraer also wanted to create a separate joint venture with Embraer`s C-390 military carrier. While Boeing pulled out of a deal to take a 49 percent stake in that program, the U.S. company said it would continue to work with Embraer to market the C-390s internationally as part of a 2012 deal. Francisco Gomes Neto, however, said any new deal would be smaller than the missed deal with Boeing. Under the terms of the agreement, each side could withdraw after midnight on Friday if it was not closed until then. Boeing does not believe it is required to pay a termination fee of $US 75 million in the deal or a fee of $US 100 million if antitrust clearance has not been obtained. “This problem is, how angry is Embraer now, and is this something they`re probably going to overcome to continue with what was a team deal that was very helpful for both parties?” Defense talked about Rumohr. Although Boeing said the company would retain previous teaming agreements to help Embraer market the C-390 internationally, analysts told Defense News that the vitriol between the two companies could herald a broader collapse in their military cooperation. Boeing terminated the joint ventures scheduled for April 24, 2020 on the grounds that Embraer did not meet the conditions set out in its agreement. [32] Industry analysts said the $4.2 billion deal was unbalanced as Embraer`s market value fell to less than $1.1 billion as demand for air travel declined due to the impact of the 2019-20 coronavirus pandemic on aviation.

[33] [34] Industry analysts speculated that Boeing could have cancelled the deal because it had recently received a pandemic aid loan from the U.S. government and wanted to avoid giving the impression that the funds were intended to support the U.S. Instead, jobs were used to strike a deal with a Brazilian company. [35] Embraer rejected Boeing`s reasons for denouncing the deal and stated that the company had “made false allegations as a pretext to circumvent its obligations” because of its financial situation after the 737 groundings MAX and “other business and reputational issues.” [36] Embraer threatened to pursue “all claims against Boeing for the harm suffered.” [36] The agreement had a termination fee of US$75 million, pursuant to a copy of the merger agreement filed in the United States. . . .