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Embraer says Boeing deal faces in-depth European Commission probe

Embraer says Boeing deal faces in-depth European Commission probe
FILE PHOTO: The logo of Brazilian aviation company Embraer is seen during the Latin American Business Aviation Conference & Exhibition fair (LABACE) at Congonhas Airport in Sao Paulo, Brazil August 14, 2018. REUTERS/Paulo Whitaker -
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PAULO WHITAKER(Reuters)
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(Reuters) – Brazil’s Embraer <EMBR3.SA> said on Thursday the European Commission indicated that it intends to open an in-depth investigation into Boeing’s <BA.N> bid for a controlling stake in the commercial aircraft arm of the Brazilian planemaker.

Reuters reported earlier this week that Boeing was set to face an EU antitrust investigation of up to five months into its deal with Embraer.

The preliminary review of the deal by the European Commission will end on Oct. 4.

If a phase 2 investigation is confirmed, Embraer will evaluate the potential impact on the estimated timeline for deal closure, the Brazilian planemaker said in a regulatory filing https://www.sec.gov/Archives/edgar/data/1355444/000129281419003235/embraer20190926_6k.htm.

The Boeing-Embraer deal, which values the Embraer unit at $4.75 billion, is scheduled to close by the end of 2019.

The deal would give Boeing a foothold in the lower end of the market, enabling it to better compete with the CSeries jets designed by Canada’s Bombardier Inc <BBDb.TO> and backed by European rival Airbus SE <AIR.PA>.

(Reporting by Sanjana Shivdas in Bengaluru; Editing by Sriraj Kalluvila)

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