EU antitrust regulators should block Boeing’s US$4.2 billion (£3.27 billion) purchase of Embraer’s commercial passenger jet division or demand hefty concessions, the head of Brazilian investor group Abradin said, calling it a killer acquisition.
Aurelio Valporto complained about the deal to the European Commission two months ago, saying it created hurdles to competition in the Brazilian aerospace industry, and on Wednesday, December 4, took his grievance to Brazil’s antitrust watchdog CADE. Abradin represents minority investors.
Boeing is buying 80% of Embraer’s commercial jets division, its most profitable, to compete directly with Airbus in the market for planes with fewer than 150 seats, reported EuroNews.
“It is a killer acquisition, not a joint venture,” Valporto said in an interview late Wednesday, referring to deals where companies buy smaller rivals to shut them down, an issue troubling competition enforcers on both sides of the Atlantic.
“Embraer airplanes are competitors of Boeing airplanes. What will be left from Embraer won’t survive, and even if it was possible to survive, Embraer wouldn’t be able to produce any aircraft with 50 passengers or more,” Valporto said.
The deal has already been approved by regulators in the United States, China, and Japan.
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
K&L Gates Expands Antitrust Practice with New Partners
May 15, 2024 by
CPI
Polish Regulators Probe PS Store and Steam for Antitrust Violations
May 15, 2024 by
CPI
French Regulator Meat-Cutting Sector Case Following Antitrust Review
May 15, 2024 by
CPI
Arizona Attorney General Files Suit Against Amazon Over Unfair Business Practices
May 15, 2024 by
CPI
Varsity Spirit and Private Equity Owners Settle Class Action Antitrust Suit
May 15, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Ecosystems
May 9, 2024 by
CPI
Mapping Antitrust onto Digital Ecosystems
May 9, 2024 by
CPI
Ecosystems and Competition Law: A Law and Political Economy Approach
May 9, 2024 by
CPI
Ecosystem Theories of Harm: What is Beyond the Buzzword?
May 9, 2024 by
CPI
Open Ecosystems: Benefits, Challenges, and Implications for Antitrust
May 9, 2024 by
CPI