Boeing (NYSE: BA) recently announced the termination of its Master Transaction Agreement with Embraer. The agreement’s proposed intent was to create a joint venture with Embraer’s commercial aviation business and a second joint venture was set to introduce new markets for the C-390 Millennium medium airlift and air mobility aircraft. Boeing exerted its rights to terminate the agreement as reportedly Embraer did not satisfy the necessary conditions.
“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. We all aimed to resolve those by the initial termination date, but it didn’t 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,” stated Marc Allen, president of Embraer Partnership & Group Operations.
Boeing and Embraer are reported to be continuing their existing Master Teaming Agreement signed in 2012 and expanded in 2016, to market and support the C-390 Millennium military aircraft.
Dow 30 component Boeing (NYSE: BA) is the world’s largest aerospace company and leading manufacturer of commercial jetliners and defense, space and security systems. To learn more about Boeing (BA) and to track its ongoing progress please visit the Vista Partners Boeing (BA) Coverage Page.
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