Boeing has agreed to a $150 million settlement with Embraer, resolving a protracted dispute regarding Boeing’s withdrawal from a $4.2 billion acquisition of an 80% stake in Embraer’s commercial airliner division. The payment details were confirmed in a recent filing with the Securities and Exchange Commission.
The initial agreement between Boeing and Embraer was announced in July 2018. However, an investigation by the European Commission into antitrust issues arose in October 2019, delaying the transaction further as the COVID-19 pandemic began in 2020.
On April 25, 2020, Boeing officially announced its withdrawal from the agreement, claiming that Embraer had failed to accept terms that could have extended the deal. Embraer, however, strongly denied Boeing’s claims, alleging that Boeing had consistently violated the agreement.
In response to the circumstances, Embraer has shifted its focus over the past four years towards enhancing its aircraft production for commercial air travel, business aviation, and defense sectors. Additionally, the company has ventured into the burgeoning advanced air mobility sector with its eVTOL aircraft project, Eve Air Mobility, which emerged from its technology incubator.
This settlement marks a significant resolution in a complex legal saga between two major players in the aerospace industry.
Source: AIN Online
