Embraer accuses Boeing of 'wrongfully' terminating merger

Boeing announced on April 25, 2020, it was pulling out of a $4.2 billion deal to acquire the commercial plane division of its Brazilian rival Embraer. The companies had planned to form a joint venture in which Boeing would take an 80 percent stake in that division. The deal had been due to be finalized no later than April 24. (Photos by AFP)

Brazilian airplane manufacturer Embraer on Saturday accused US giant Boeing of "wrongfully" terminating a $4.2 billion acquisition deal and making "false claims" to get out of the agreement.

Boeing had been due to buy an 80 percent stake in the Brazilian company's commercial plane division but earlier on Saturday said it was exercising its right to pull out, claiming "Embraer did not satisfy the necessary conditions."

"We believe Boeing has engaged in a systematic pattern of delay and repeated violations of the (deal), because of its unwillingness to complete the transaction in light of its own financial condition and 737 MAX and other business and reputational problems," said Embraer in a statement.

The buy-out was already controversial since they are two of the three largest airline manufacturers in the world, after Airbus.

The merger was widely seen as a counterweight to Airbus' takeover of Canadian Bombardier's commercial aviation business.

Deccan Herald is on WhatsApp Channels| Join now for Breaking News & Editor's Picks