EU steps up Boeing Embraer takeover investigation

European authorities are actively requesting materials from the Boeing Co., USA to create a joint venture (JV) with Embraer, Brazil, TASS reported with reference to Reuters.

According to this source, European regulators requested Boeing sales data for more than 20 years, which is more than 1.5 million pages of documents. In October, the European Commission opened an in-depth investigation into the deal due to concerns that the agreement could reduce competition for commercial aircraft. According to the agency, due to the investigation, the signing of the agreement, which was planned to be concluded before the end of the year, may be delayed until February 2020.

On December 17, 2012, Embraer and Boeing agreed on the terms of a deal to create a joint venture. In accordance with this agreement, the cost of the new joint venture, which will be engaged in the construction of exclusively civilian aircraft (the Embraer’s military unit will not be affected), will reach US $ 5.26 billion. It is assumed that 80% of the future company will be owned by Boeing, and 20% by Embraer. According to media reports, Embraer shareholders approved the deal, Brazilian President Jair Bolson Aru at the beginning of 2019 also said that the government would support it. Now the transaction must be approved by the authorized bodies of the two countries.

Source – https://www.aex.ru/

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