LONDON — Brazilian authorities have granted Boeing and Embraer the clearance to continue with their planned partnership. The approval of two proposed joint ventures comes from the Council for Economic Defense (CADE), and it will become final in 15 days unless commissioners request a review.
“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. “It will not only benefit our customers but also allow the growth of Embraer and the Brazilian aeronautical industry as a whole.”
The proposed partnership encompasses two joint ventures. One will comprise commercial aviation and services, with Boeing holding 80% and Embraer will own the remaining 20%. The other joint venture will promote and develop markets for the multi-mission medium airlift C-390 Millennium, as announced in the 2019 Dubai Air Show.
To date, China, Colombia, Japan, Kenya, Montenegro, South Africa, and the United States have approved the deal. As for the European Commission, the intended partnership is still under discussion.
“We have been productively engaged with the [European] Commission to demonstrate the pro-competitive nature of our planned partnership, and we look forward to a positive outcome,” said Marc Allen, Boeing’s president of Embraer Partnership & Group Operations.
Back in October 2019, the European Commission opened an investigation to assess the proposed joint ventures due to concerns that the transaction could reduce competition as regards commercial aircraft, particularly in the 100-150 seat segment.
The European Commission expects to make a decision on February 20, 2020.