Brazilian prosecutor's office has asked CADE to re-examine Boeing deal with Embraer
According to Reuters, Brazilian Prosecutor General's Office has filed a request with the Antimonopoly Authority of the country (CADE) to conduct an additional audit of the sale of the national aircraft manufacturer Embraer to the American aircraft manufacturer Boeing.
According to the agency, "individual gaps" were found in the decision of the regulator adopted on 27th of January, which approved the deal "without restrictions".
In particular, prosecutors believe that when considering the issue, the consequences of the merger for the regional aviation market in the segment of aircraft with a capacity of fewer than 100 passengers, "on which various types of Embraer aircraft are very successful," were not considered. In the technical justification for the permit, CADE experts indicated that there was no indication that "the deal is intended to obstruct or possibly lead to future competition from Embraer in the commercial aviation market with a capacity of more than 150 passengers." On the contrary, it argued that as a result of the merger, competition in the aircraft industry could intensify.
Embraer, in turn, hopes for a "positive decision", noting that they are cooperating on this issue with CADE and European regulators, who, as Reuters previously reported, extended their consideration of the transaction until 30th of April. "We have already received unconditional consent to complete the transaction in almost all jurisdictions, including the United States, China and Japan," the company said in a statement.
At the end of 2018, Embraer and Boeing agreed on the terms of a deal to create a joint venture. In early 2019, the Brazilian government announced support for the merger, which, being the owners of the "golden share", had the right to veto.