Chicago (AP) - The US aircraft manufacturer Boeing will not take over the Brazilian rival Embraer. The purchase of four fifths of Embraer's commercial aircraft business for $ 4.2 billion failed, Boeing said.
In the end, it was not possible to agree on the conditions of the takeover in two-year negotiations, said Boeing manager Marc Allen. This is "deeply disappointing".
Embraer announced that it would claim damages. Boeing wants to get out of the purchase agreement because of homemade problems and uses alleged discrepancies as an excuse, said Embraer after Boeing's explanation. The company spoke of an illegal termination of the purchase agreement.
The competition authorities had gradually waved the deal through, with the exception of the European Commission, which had recently examined it. With the purchase, Boeing would have incorporated Embraer's range of smaller aircraft. That would have strengthened the Americans in competition with the European rival Airbus.
Boeing did not mention the corona crisis in the report. But it is clear that the crisis is severely affecting the aircraft manufacturers' business, with uncertain long-term consequences. There is also the big problem for Boeing with the 737 Max. The model has been banned worldwide since two plane crashes. Boeing presents its quarterly results on April 29.