CHICAGO — Boeing announced Saturday that it has terminated its Master Transaction Agreement (MTA) with Embraer.
Under the deal announced in late 2018, the two companies had planned to create a joint venture comprising Embraer’s commercial aviation business.
The $4.2-billion tie-up was mainly aimed at challenging Airbus in the market for midsize planes.
The two companies also planned a second joint venture to develop new markets for the C-390 Millennium military aircraft.
“Under the MTA, April 24, 2020, was the initial termination date, subject to extension by either party if certain conditions were met. Boeing exercised its rights to terminate after Embraer did not satisfy the necessary conditions,” Boeing said in a statement.
“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.”
The planned partnership had received approval from all regulatory authorities, with the exception of the European Commission, Boeing said.
There was no immediate comment from Embraer.
The image is courtesy of Embraer.