Boeing-Embraer merger placed on hold by European regulators

European Commission ‘stops the clock’ on proposed acquisition until parties supply regulators with ample information
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Embraer, Boeing, European commission, Competition law, Competition, Anti competition law
Embraer

The European Commission has frozen its investigation into Boeing’s proposed merger with Embraer, meaning the acquisition has been delayed until at least March 2020.

Boeing hopes to acquire a majority stake in Brazilian planemaker Embraer but European regulators are concerned that the merger would significantly reduce competition in the market.

Investigators have paused their review of the deal because they have not received sufficient documentation.

The investigation into the merger will not proceed again until regulators are happy with the level of information provided to them.

A statement from the regulator said: “Parties must supply the necessary information for the investigation in a timely fashion. Failure to do so will lead the commission to stop the clock.”

The European Commission said earlier that it was concerned that the proposed transaction “may remove Embraer as the third largest global competitor” and lead to “higher prices and less choice”.

The planned transaction would see Boeing acquire 80% of Embraer's global commercial aircraft business and establish a new company called Boeing Brasil.

Embraer is a major manufacturer of regional jets and is behind the E2 family of aircraft, which serve both the regional jet market and the lower end of the single-aisle market.

The European Commission was originally supposed to decide by 20 February 2020 whether the merger will reduce competition by an unacceptable level. The decision has now been delayed.

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