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Cade to review Boeing’s purchase of Embraer

embraer

embraer

The Brazilian Federal Public Ministry requested to Administrative Council for Economic Defense (Cade) a review of the purchase approval of Embraer by Boeing. The operation was approved in January by the Board when it concluded that there were no competitive problems.

However, for the parquet, the technical area of ​​the municipality did not analyze all the markets that impact the operation. According to the Deputy Attorney General of the Republic Samantha Chantal Dobrolowolski, the market is complex and the transaction will directly contribute to the definition, and consequent analysis, of the broader market affected.

At the time of purchase, Cade was based on the commercial aircraft segment with a capacity between 100 and 150 seats.

For MPF, Cade should take into account the segment with less than 100 seats, referring to regional type aviation. According to the parquet, Embraer currently manufactures several types of aircraft used for regional aviation, and has a significant level of success in this market.

Purchase

In January, Cade decided to approve the transaction without any restrictions. The analysis of the merger by the municipality took place under strictly competitive aspects.

According to the autarchy, the operation should not negatively impact the levels of rivalry existing in the market, despite the conditions of entry in the sector are not favorable.

Cade understood that the operation will result in benefits for Embraer, which will become a strategic partner of Boeing. “Thus, the division that remains at Embraer – executive and defense aviation – will have greater technological and commercial cooperation from Boeing. In addition, the heavier investments of the commercial division, which has strong competition with Airbus, will be in charge of Boeing “, says the municipality.