The closing date for a joint venture that would see Boeing take an 80 percent ownership stake in Embraer’s commercial aircraft and services operations has been pushed to 2020 after the European Commission indicated that it would be opening a Phase II assessment of the deal. Announced in July 2018, the transaction was initially expected to close by the end of 2019. As previously reported by AVweb, Embraer’s shareholders approved the deal in February 2019.
According to the European Commission, a Phase II assessment includes “in-depth analysis of the merger’s effects on competition” and involves gathering information from “companies’ internal documents, extensive economic data, more detailed questionnaires to market participants, and/or site visits.” Boeing and Embraer have said they “look forward to assisting with that review.”
A separate Boeing-Embraer joint venture to promote and develop markets for the KC-390 multi-mission military aircraft is also in the works. That venture, also approved by shareholders in February, would give Boeing a 49 percent stake in the KC-390 program with Embraer keeping 51 percent. The first KC-390 was delivered to the Brazilian air force in September.
A Phase II assessment includes “In-depth analysis of the marger’s effect on competition”.
In other words, the Europeans are trying to see how they can protect their beloved Airbus from outside competition. And they say the Americans give too much government protection to Boeing.8