The agreement between aviation giants, American Boeing and Brazilian Embraer, to form a joint venture was terminated by Boeing's decision.
Embraer, Brazil, the third largest aircraft manufacturer in the world, and the American Boeing company, set up a joint venture between the two companies on February 26, 2019; He decided that the company Embraer should be divided into "Trade" and "Defense", and 80% of the "Trade" division would be bought by Boeing. Then, on January 27, 2020, the Brazilian Economic Defense Administrative Council (CADE) approved Boeing's acquisition of the Brazilian Embraer's commercial aviation division, deciding that the operation would not harm local competition. The European Union's approval process for the joint venture was ongoing.
However, Boeing announced in a statement on 25 April 2020 that Embraer terminated the agreement for purchasing 80% of its commercial division for 4,2 billion USD. It was suggested that Embraer did not comply with the agreement requirements as a reason for termination. On the other hand, the value of Embraer's shares has decreased by 2018/2 since 3 when the agreement was agreed, in which case it was announced that if Boeing purchased the commercial division of Embraer, the entire company would have paid three times the value.
On the other hand, it was announced that the agreement between the two companies on the joint marketing and maintenance of C-2012 Millennium military aircraft, signed in 2016 and expanded in 390, continues.