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The expected close of the Boeing and Embraer deal was pushed back to early 2020 due to a hold-up in the assessment process from the European Commission.
The establishment of the Joint Venture under the “Boeing Brasil – Commercial” name was expected to come into effect by the end of 2019. However, the European regulator had announced it will “open a Phase II assessment in its review of the transaction”.
The joint venture will be made up of the commercial aircraft and services operations of Embraer. Boeing will own 80 percent of the new company, while Embraer will hold the remaining 20 percent.
With this deal Boeing is determined to challenge Airbus A220 program (formerly known as CSeries purchased from Bombardier). Airbus was lucky enough to collect all the approvals on time. Embraer, in turn, cannot be guaranteed that all the necessary documents will be issued according to the new schedule.