Boeing is pulling out of negotiations for a joint venture with Brazil's Embraer, a deal that would have seen Boeing pay $4.2 billion for 80 percent of Embraer's commercial unit that builds small jets, Bloomberg reports.
Aviation giant Boeing has had a tough time. The 737 Max plane crashes were followed by the coronavirus pandemic, and its stock has plunged 65 percent in the past year. Embraer has also been hit hard, with its market capitalization falling below $1.1 billion, about a quarter of what Boeing would pay just for the commercial jet unit.
Through the collapsing negotiations, the two long-term partners now become competitors, something that strengthens competitor Airbus's grip on the market, writes Bloomberg.
Boeing's CEO has previously warned his employees that the company must adapt to "a new reality" after travel demand collapsed in the wake of the corona pandemic.
Boeing and Embraer began talks in the latter part of 2017. Since then, Boeing's balance sheet has changed drastically, the problems with the 737 Max have cost the company at least $19 billion.
Source: di.se
