Boeing Co has terminated a merger transaction with the Brazilian aircraft manufacturer Embraer after the latter failed to arrange conditions to effectuate the tie-up, the US company said in a statement published on Boeing's official website.
"Boeing has worked diligently over more than two years to finalize its transaction with Embraer. Over the past several months, we had productive but ultimately unsuccessful negotiations about unsatisfied MTA conditions. We all aimed to resolve those by the initial termination date, but it didn't happen," the statement read. "It is deeply disappointing. But we have reached a point where continued negotiation within the framework of the MTA is not going to resolve the outstanding issues."
Reacting to the development, Embraer accused the US company of "wrongfully" terminating the deal and making "false claims" to end it, AFP reported.
Under the $4.2 billion deal, Boeing was supposed to buy 80% of Embraer’s commercial aircraft division. Boeing stated that it had exercised the right to reject the transaction after Embraer "failed to fulfill all the necessary conditions".
The Brazilian manufacturer refused to extend the deadline for the transaction, which expired on 24 April.
The two companies established the partnership in February of last year. Boeing Brasil–Commercial, the proposed joint venture between the two manufacturers, was supposed to design, build, and sell commercial airliners worldwide.
