Brazil Prosecutors Challenge Approval of Boeing-Embraer Tie-Up

 In C4ISR, GDI, Defense, Air

BRASÍLIA — Brazilian pros­e­cu­tors have filed an appeal with antitrust agency Cade asking the reg­u­la­tor to recon­sid­er its approval of a deal sell­ing con­trol of Embraer SA’s com­mer­cial avi­a­tion divi­sion to Boeing Co, accord­ing to public fil­ings.

The deal had been approved with­out restric­tions on Jan. 27 by Cade’s General Superintendent Alexandre Cordeiro Macedo. Cade’s top admin­is­tra­tive coun­cil can still call for a review of the case, putting the matter to a vote.

In the appeal filed on Wednesday, pros­e­cu­tors referred to “some omis­sions” in the deci­sion made by Macedo when assess­ing the mar­kets that would be affect­ed, citing the region­al avi­a­tion market, which uses air­craft with fewer than 100 seats.

Boeing has offered to pay $4.2 bil­lion for 80% of Embraer’s com­mer­cial jet divi­sion, which builds pas­sen­ger jets in the 70- to 150-seat seg­ment.

The appeal, seen by Reuters, was filed by Deputy Attorney General Samantha Dobrowolski. Under Brazilian antitrust law, it will be now be assigned to a report­ing com­mis­sion­er who will decide whether it should be con­sid­ered by the body. (end of excerpt)

Click here for the full story, on the Reuters web­site.


Source: Defense Aerospace

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