Embraer (EMB, São José dos Campos U.E. Stumpf International) and Boeing (BOE, Washington National) have welcomed the approval by Brazil's antitrust regulator (Conselho Administrativo de Defesa Econômica - CADE), of the American manufacturer's purchase of Embraer’s commercial aviation division without restrictions on January 27, according to a statement by Boeing.
CADE’s commissioners may still request reconsideration of the case, but barring this, the decision will become final within the next 15 days.
The partnership has now received clearance from every regulatory jurisdiction, including the United States, China, Japan, South Africa, Kenya, Colombia, and Brazil, but the European Commission continues to assess the deal.
Boeing said in the statement that it remained confident of winning approval from the European Union, which has been studying the antitrust case since late 2018 and has set a deadline of April 30, 2020, to makes its decision.
"Brazil's approval of the deal is a clear demonstration of the pro-competitive nature of our partnership," Francisco Gomes Neto, president and CEO of Embraer, said in the statement. "It will not only benefit our customers but also allow the growth of Embraer and the Brazilian aeronautical industry as a whole."
Boeing has offered to pay USD4.2 billion for 80% of Embraer’s commercial aircraft division. This would put it in direct competition with Bombardier Aerospace's regional jet business, acquired by Europe’s Airbus and rebranded as the A220 programme.
The planned Boeing-Embraer partnership would also create a joint venture to promote and develop markets for the multi-mission medium airlift KC-390 Millennium, in which Embraer would own a 51% stake, and Boeing 49%.
