Brazil gives blessing to Boeing-Embraer merger

European Commission remains only regulator yet to clear deal between planemakers
Boeing, European commission, Embraer, Boeing-embraer merger, Boeing embraer, Boeing embraer merger

Brazil has given its nod of approval to proposals to merge manufacturers Boeing and Embraer.

The proposal to merge the pair has received clearance from “every regulatory jurisdiction” according to Boeing, with the exception of the European Commission, which continues to assess the deal.

European regulators have concerns over the deal and the impact it would have on competition in the market if it were to go ahead.

The European Commission is still investigating the planned merger and expects to make a decision in the coming months.

"This latest clearance is yet another endorsement of our partnership, which will bring greater competition to the regional jet marketplace, better value for our customers and opportunities for our employees," said Marc Allen, Boeing's president of Embraer Partnership & Group Operations.

Francisco Gomes Neto, president and CEO of Embraer, said: “Brazil's approval of the deal is a clear demonstration of the pro-competitive nature of our partnership.

“It will not only benefit our customers, but also allow the growth of Embraer and the Brazilian aeronautical industry as a whole."

Clearance has now been granted in Brazil, United States, China, Japan, South Africa, Montenegro, Colombia, and Kenya. 

Allen added: "We have been productively engaged with the [European] Commission to demonstrate the pro-competitive nature of our planned partnership, and we look forward to a positive outcome.

"Given the positive endorsement we've seen from customers across Europe and the unconditional clearance we've received from every other regulator who has considered the transaction, we look forward to securing final approval for the transaction as soon as possible."

The planned partnership between Embraer and Boeing comprises two joint ventures: one joint venture made up of the commercial aircraft and services operations of Embraer, in which Boeing will own 80 percent and Embraer will hold 20 percent; and another joint venture in defence.

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