Embraer strongly believes that Boeing wrongly terminated the MTA, made false allegations as a pretext to try to avoid its commitments, close the deal and pay Embraer the $4.2 billion purchase price. We believe that Boeing presents a systematic model of delays and repeated violations of the MTA because it is unwilling to complete the transaction in light of its own financial situation and 737 MAX and other business and reputational issues. “We believe Boeing is in a systematic pattern of delays and repeated violations of the MTA because it is unwilling to close the transaction in light of its own financial situation and 737 MAX and other business and reputational issues,” Embraer said Saturday. “Embraer believes that it fully meets its obligations under the MTA and has met all the conditions that must be met by April 24, 2020. Embraer will take all action against Boing over damages to Embraer as a result of Boeing`s unlawful termination and violation of the MTA. The two manufacturers are expected to enter into a joint venture partnership for the development of commercial aircraft. Boeing would thus participate in the smaller market of 90 to 120 seats currently dominated by the Airbus A220. Airbus had bought the A220 from Bombardier, one of Embraer`s biggest competitors. The agreement could have resulted in a brand new turboprop. View original content:www.prnewswire.com/news-releases/boeing-terminates-agreement-to-establish-joint-ventures-with-embraer-301047201.html Boeing announced a systematic pattern of delays and repeated violations of the M A follow-up after Boeing announced the end of the Master Transaction Agreement (MTA) due to unsuccessful negotiations to resolve certain conditions with the agreement, Embraer followed up Saturday with its own statement that Boeing had wrongly terminated its agreement and that the company did not want to pay $4.2 billion. The two companies signed a non-binding agreement for the creation of the joint venture for the first time nearly two years ago.
“Boeing has worked hard for more than two years to complete its transaction with Embraer. In recent months, we have had productive but ultimately unsuccessful negotiations on unsatisfied MTA conditions. We wanted to resolve them all before the initial termination date, but that wasn`t done,” said Marc Allen, president of Embraer Partnership-Group Operations. It`s deeply disappointing. But we have reached a point where the continuation of the MTA negotiations will not resolve the outstanding issues. This morning in the United States, the news that Boeing has terminated its joint venture agreement with Embraer.