Industry Boeing terminates joint venture agreement with Embraer
Boeing has announced, that it has terminated its joint venture agreement with Embraer.
The U.S.-American aircraft manufacturer announced, that it has terminated the Master Transaction Agreement (MTA) with Embraer, under which both companies sought to establish a new strategic partnership.
Over the past months, the planned joint venture had received unconditional approval from all necessary regulatory authorities, except of the European Commission. Boeing now states that it had only exercised its rights to terminate the contract after Embraer did not satisfy the necessary conditions.
Embraer on the other hand states the same in saying, that Boeing was the company to wrongfully have terminated the MTA.
Marc Allen, president of Embraer Partnership & Group Operations commented: "Boeing has worked diligently over more than two years to finalize its transaction with Embraer. Over the past several months, we had productive but ultimately unsuccessful negotiations about unsatisfied MTA conditions. We all aimed to resolve those by the initial termination date, but it didn't happen [...] It is deeply disappointing. But we have reached a point where continued negotiation within the framework of the MTA is not going to resolve the outstanding issues."
Embraer wrote in a statement: "Embraer believes strongly that Boeing has wrongfully terminated the MTA, that it has manufactured false claims as a pretext to seek to avoid its commitments to close the transaction and pay Embraer the US$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."
The Brazilian company added that it believes it is in full compliance with its obligations under the MTA, and that it has satisfied all conditions required. Embraer added that it will pursue all remedies against Boeing for the damages incurred by Embraer as result of Boeings wrongful termination.
"Boeing and Embraer will maintain their existing Master Teaming Agreement, originally signed in 2012 and expanded in 2016, to jointly market and support the C-390 Millennium military aircraft," the manufacturer added.
Source © boeing.mediaroom.com