MIAMI – Boeing has today terminated its Master Transaction Agreement (MTA) with Embraer, under which the two companies looked to establish a new strategic partnership to develop new markets.
The MTA had received unconditional approval from all necessary regulatory authorities except that of the European Commission.
According to Boeing’s press release, the joint venture comprised Embraer’s commercial aviation business and a second joint venture to exploit new markets for the C-390 Millennium medium airlift and air mobility aircraft.
The initial MTA termination date was set for April 24, 2020, if necessary conditions were not met. As a result, Boeing decided to terminate the agreement as Embraer has not satisfied said conditions.
Unsuccessful negotiations after 2 years
Marc Allen, president of Embraer Partnership & Group Operations, said, “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.”
Allen added that Embraer aimed to resolve said conditions by the initial termination date, but that did not happen. “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.”
However, both companies said they would maintain their current Master Teaming Agreement from 2012- 2016 to jointly market and support the C-390 Millennium military aircraft.