Boeing deal for Embraer collapses
The proposed $4.2 billion sales of Brazilian aircraft manufacturer Embraer to Boeing has collapsed, according to reports.
Boeing was reported to have ended talks due to the impact of the coronavirus pandemic and the grounding of its 737 Max fleet, but Embraer has threatened to sue.
The Brazilian firm accused Boeing of “manufactured false claims” and said that it has “wrongfully terminated” the deal.
“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.”
Boeing, which is expected to be granted a bailout by the US government, said it “exercised its rights to terminate after Embraer did not satisfy the necessary conditions”.
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