Boeing’s £3.8bn deal with Embraer ‘to be investigated by EU competition watchdog’
Boeing is facing an investigation by EU antitrust regulators into its bid for a controlling stake in the commercial aircraft arm of Brazilian firm Embraer.
The deal, which marks the biggest shift in commercial aerospace in decades, would reinforce Western plane makers’ market positions against newcomers from China, Russia or Japan.
I would give Boeing a foothold in the lower end of the market, helping it compete with jets made by Bombardier and backed by European rival Airbus.
The deal has the Embraer unit valued at $4.75bn (£3.8bn).
The European Commission has set a 4 October deadline for a preliminary review of the deal.
But it will likely launch a full-scale probe after the review finishes, which could take up to five months and raises pressure on Boeing to offer concessions to address competition concerns.
According to Reuters, the Commission has already questioned suppliers and rivals on the deal, indicating concerns about the concentration in the market.
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