Embraer delays timeline for close of Boeing deal to early 2020

This post was originally published on this site
https://i-invdn-com.akamaized.net/trkd-images/LYNXMPEF9211M_L.jpg

By Marcelo Rochabrun and Jamie McGeever

BRASILIA (Reuters) – Brazilian planemaker Embraer (SA:) has delayed its expected timeline for the closing of a major deal with Boeing (N:) to early 2020, according to a securities filing on Thursday.

Previously, Embraer had said repeatedly that the deal, which will see Boeing buy 80% of its commercial jet division for $4.75 billion, would close by the end of 2019.

The new timeline comes after the European Commission said it would do an extensive investigation of the deal on antitrust grounds. Embraer also said on Thursday it had received approval from U.S regulators.

The deal with Boeing will challenge Airbus SE (PA:), which recently bought a controlling stake in the Bombardier unit that competes directly with Embraer’s mid-sized commercial planes of up to 150 passengers.

The Airbus-Bombardier deal was approved by all regulators.

Until all approvals are received and other conditions are satisfied, Embraer cannot guarantee that the Boeing deal will keep to its new timetable or be completed at all, it said.

Embraer shares have fallen five days in a row, their longest losing streak in four months, and are down 10% in the last two weeks, underperforming the broader Brazilian stock market.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Add Comment