This archive report was first published on 27 April 2020.
On April 25, 2020, Boeing announced the termination of its Master Transaction Agreement (MTA) with Embraer, a Brazilian aerospace conglomerate.
The agreement, which was initially set to expire on April 24, 2020, aimed to create a joint venture for Embraer's commercial aviation business, including the development of new markets for the C-390 Millennium medium airlift and air mobility aircraft.
According to Boeing, the company decided to terminate the agreement after Embraer failed to satisfy some of the conditions of the deal. However, Embraer argues that it had met all the conditions by April 24, 2020, and that Boeing's termination was an attempt to avoid its commitment to close the transaction and pay Embraer the $4.2 billion purchase price.
Despite the termination, the two companies will maintain their existing agreement to jointly market and support the C-390 Millennium military aircraft.
Embraer is a leading producer of civil aircraft, with its headquarters in São José dos Campos, São Paulo. The company produces commercial, military, executive, and agricultural aircraft, and provides aeronautical services.
On February 26, 2019, Boeing and Embraer announced the acquisition of an 80% share of Embraer's commercial division, dubbed Boeing Brasil – Commercial. However, the deal was canceled in April 2020, following Boeing's financial troubles caused by the COVID-19 pandemic and the 737 MAX disasters.
