Skip to comments.Boeing pulls out of $4.2 billion deal for Embraer's commercial jet unit
Posted on 04/25/2020 9:47:29 AM PDT by BenLurkin
Boeings statement confirmed a Reuters story earlier on Saturday and followed a story on Friday in which Reuters reported that the deal was close to collapse as the two parties neared a crucial midnight deadline.
Boeing said in the statement that Embraer had failed to meet certain conditions for the deal to go through, although it did not specify which ones. The April 24 deadline for closing had been baked into the deal since early last year, but antitrust hiccups had forced the two companies to try to work out a new deadline.
In July 2018, Boeing agreed to buy 80% of Embraers commercial jet unit to challenge Airbus directly in the market for midsize planes of up to 150 seats.
(Excerpt) Read more at reuters.com ...
For your interest C.P.
Boeing doesn’t have the cash or credit to do this anymore.
Basically on death watch. Actual cash in bank is like $15B, burning it like crazy, and facing massive drop in demand.
USGov will be only savior now. If not direct cash, then by issuing giant PO for more aircraft, missiles and other fun stuff.
Lets see how long it takes for China’s Comac state aircraft company to make an offer. They are a key part of China’s industrial plan to replace the US as the dominant supplier of commercial airliners. With the assistance of our FAA in dragging out Boeing’s return of the 737 Max they are amazing making progress everyday.
Someday we will all be flying on Chinese aircraft if the US doesn’t wake up soon.
I wonder who’ll buy it? The aircraft industry is cut throat..
I was thinking the same. We better start keeping important industries in our hands. No not nationalization, but something.
Because the check didn’t bounce, Boing has had no problem transferring all that jet building technology to the Chicoms. With assistance from “The Inside The Loop” crowd.
Interesting. Boeing bought MacDonald Douglas and then proceeded to put their “MD-80/90” series out of business. If they would have just committed to letting the old MD guys do the smaller aircraft they would have been golden. This is not retrospect on my part, I was working in Long Beach back then on the military side and said the same thing.
Yep... Most will laugh at that idea...
They are the like the ones who laughed at people (like my Dad who had good reason to hate Japs) who said: "Someday we will all be driving around in Jap cars if the US doesnt wake up soon."
Embraer aircraft are more prone to Icing than many other aircraft. Not the brand you want to fly in the Winter.
“I wonder wholl buy it? The aircraft industry is cut throat..”
Maybe Embraer will buy Boeing now?
Neighbor here at my air park is a North American big shot for Embraer. He’s been putting in dirt for a hanger next to his home. Guess that is gonna be put on hold.
“Actual cash in bank is like $15B”
From debt. They have no cash left.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.