Over the weekend Boeing made a surprising move, with stock markets closed, by announcing the termination of a Master Transaction Agreement (MTA) with Embraer, under which the two companies sought to establish a new level of strategic partnership.
In response Embraer has issued a statement that it is a move by Boeing to cancel its commitment to pay the US$4.2bn purchase price. “We believe Boeing has engaged in a systematic pattern of delay and repeated violations of the MTA, because of its unwillingness to complete the transaction in light of its own financial condition and 737 MAX and other business and reputational problems.”
Boeing says it exercised its rights to terminate after Embraer did not satisfy the necessary obligations. "Boeing has worked diligently over more than two years to finalize its transaction with Embraer. Over the past several months, we had productive but ultimately unsuccessful negotiations about unsatisfied MTA conditions," said Marc Allen, president of Embraer Partnership & Group Operations at Boeing. Boeing and Embraer will maintain their existing MTA to jointly market and support the C-390 military aircraft.