Aerospace company Boeing has terminated its master transaction agreement (MTA) with Embraer over unsatisfied MTA conditions.
As part of this agreement, the two sides agreed to create a joint venture (JV) comprising Embraer’s commercial aviation business.
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It was also planned that a second JV will focus on the development of new markets for the C-390 Millennium medium airlift and air mobility aircraft.
The two joint ventures were Boeing Embraer-Defense and Boeing Brasil-Commercial.
The initial termination date of 24 April was exercised by Boeing as Embraer did not satisfy the necessary conditions.
Embraer partnership and group operations president Marc Allen said: “Boeing has worked diligently over more than two years to finalise 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.
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By GlobalData“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.”
All required regulatory authorities, except the European Commission, have granted their unconditional approvals for the proposed partnership.
In January, Boeing and Embraer secured unconditional approval from the Administrative Council for Economic Defense’s (CADE) General-Superintendence (SG) in Brazil for their strategic partnership.
In a statement, Embraer said: “Embraer believes it is in full compliance with its obligations under the MTA and will pursue all remedies against Boeing for the damages incurred by Embraer as a result of Boeing’s wrongful termination and violation of the MTA.”
Meanwhile, the two parties will maintain their existing 2012-signed MTA, which was expanded in 2016. This is for the joint market and to support the C-390 Millennium military aircraft.
