Boeing announced last night that its deal to buy the civil arm of Embraer had collapsed and will not take place.
Despite receiving legal authority from all of the potential international objectors bar the EU, the deal couldn’t be finalised.
The specifics are not being stated but the current plight of the industry seems to have made money tight and prospects of sales infinitely less likely.
Frankly It looks like Boeing soured on the deal but would never say so. Embraer have made it perfectly clear they think Boeing just didn’t have the money anymore, and are publicly very unhappy about what they see as a betrayal and a waste of time and effort.
Boeing legally owns $100m in failure to complete fees over the $4.7 billion deal. Embraer have already said they want it and will likely sue for more – they claim the deal caused them to loose sails of the E2 as customers held off buying expecting bigger discounts from Boeing Brazil as it was to have become.