The CEO of Brazilian jet maker Embraer said Monday its $4.2 billion commercial jet deal with Boeing can't be revived, and the Brazilian company has begun arbitration proceedings against the American aerospace giant.
As Fred Katayama reports, shares of both companies dropped.
Boeing's $4.2 billion deal to buy Embraer's commercial jets business can't be revived.
That's what Embraer’s CEO said Monday after Boeing pulled out of the agreement.
The deal collapsed hours after its deadline expired over the weekend without an agreement on how to implement it.
The Brazilian maker of regional and business jets contends Boeing killed the deal because of the financial problems the American aerospace giant faces from the health crisis and the grounding of its troubled 737 MAX jets.
Boeing accused Embraer of failing to meet conditions for closing the deal.
That agreement calls for a $100 million breakup fee.
But Embraer is poised to sue Boeing for much more than that, saying it would pursue "all remedies." It says it has begun arbitration proceedings against Boeing.
The company now faces a historic crisis.
Two years ago, Airbus absorbed the A220 jet liner made by Embraer's arch rival, Canada's Bombardier.
Shares of Embraer and Boeing dropped at the market open Monday.
Boeing announced that it is backing out of its $4.2 billion deal that would have allowed the troubled aerospace company to purchase..
Boeing has pulled out of a $4.2 billion deal to buy Embraer’s commercial jets division. The move sparked a furious response from..