Boeing: EU Contest Guard reports concerns about merger with Embraer

The EU competition guardians are concerned about the proposed merger of the US aircraft manufacturer Boeing and the Brazilian manufacturer Embraer. An in-depth review will be initiated, the EU Commission said. She now has 90 days to check the deal.

In the deal, Boeing plans to acquire 80 percent of Embraer's airliner and service business for $ 4.2 billion. In Brazil, there had initially been political opposition to the plan because Embraer also develops and builds military aircraft and security technology. Finally, Brazil's President Jair Bolsonaro announced that the government would not veto the deal.

EU competition watchdogs are now particularly concerned about the commercial aircraft sector. Embraer as the world's third largest provider on the already heavily concentrated on Boeing and the European manufacturer Airbus omitted market, it was said by the Authority. Higher prices could therefore be the result.

In the market for small narrow-body aircraft - that are airplanes with 100 to 225 seats - Boeing and Embraer partly a head-to-head race, it was said. Boeing offers the segment 737 Max aircraft series, Embraer is the world's leading manufacturer of regional aircraft.

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Chris Ratcliffe / Bloomberg via Getty ImagesThe Big ReconstructionA leading to the crash of two Boeing aircraft

"Commercial jet markets need to work well to provide customers with innovative and efficient products at a fair price," said EU Commissioner Margrethe Vestager. The purpose of the in-depth investigation was to prevent price competition and product development from being affected.

Companies may be able to dispel the concerns with concessions. For Boeing, however, comes the test at an inopportune: The company is struck after the crashes of two Boeing 737 Max -8 with a total of more than 300 dead - the model concerned may not fly since March due to concerns of various air traffic controllers worldwide.