Boeing and Embraer welcome Brazilian approval

Boeing and Embraer have welcomed the unconditional approval of their strategic partnership by the Administrative Council for Economic Defense’s (CADE) General-Superintendence in Brazil. With this, the partnership will have received unconditional clearance from every regulatory jurisdiction excepting the European Commission, which continues to assess the deal.

The decision by Brazilian authorities will become final within the next 15 days unless a review is requested by CADE Commissioners.

“Brazil’s approval of the deal is a clear demonstration of the pro-competitive nature of our partnership,” said Francisco Gomes Neto, president and CEO of Embraer. He argued: “It will not only benefit our customers, but also allow the growth of Embraer and the Brazilian aeronautical industry as a whole.”

Boeing’s president of Embraer Partnership & Group Operations, Marc Allen said the latest clearance is “yet another endorsement of our partnership” which the company believes will bring “greater competition to the regional jet marketplace.”

The planned strategic partnership comprises two joint ventures: one made up of the commercial aircraft and services operations of Embraer (Boeing Brasil – Commercial) in which Boeing will own 80% and Embraer will hold 20%. The other JV will promote and develop markets for the C-390 Millennium.

Unconditional clearance has now been granted in Brazil, United States, China, Japan, South Africa, Montenegro, Colombia and Kenya. Discussions with the European Commission began in late 2018 and Boeing and Embraer say they continue to engage as the Commission proceeds through its assessment of the transaction.

“We have been productively engaged with the Commission to demonstrate the pro-competitive nature of our planned partnership, and we look forward to a positive outcome,” Boeing’s Allen said.