Brazilian authorities approved on Monday (27.01.2020), without restrictions, the purchase of the aircraft manufacturer Embraer by the American company Boeing, an operation announced in July 2018 but which still needed several endorsements.
Brazil's antitrust body, the Administrative Council for Economic Defense (CADE), has ruled that the two companies do not compete in the same markets and that the deal therefore poses no risk to competition.
Boeing and Embraer announced a joint venture which will result in a new company valued at $4.750 billion and is intended to counter the merger between the two rivals of both, the European Airbus and the Canadian Bombardier, which announced an agreement at the beginning of 2018.
The transaction between Boeing and Embraer will have two stages. In the first, Boeing will buy 80 percent of the capital of Embraer's commercial division, while in the second, a joint venture will be created to produce the KC-390 military freighter, the largest military aircraft manufactured in Brazil.
According to CADE, the operation will bring benefits to Embraer, "which will become a strategic partner of Boeing." The technological and commercial cooperation may favor the executive aviation and defense sectors remaining with Embraer.
The US Chamber of Commerce had previously approved the transaction, which is now requires a guarantee from the European Union.
Boeing is the world's largest aircraft manufacturer, while Embraer is a leader in the regional aviation sector, with aircraft capacity between 70 and 130 seats.
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