Boeing has terminated its $4.2 billion deal with Brazilian aircraft maker Embraer, the American company announced Saturday. The deal would have given Boeing a bigger stake in the market for smaller jets and help the company develop airplanes more cheaply.
Embraer responded Saturday in a press release that it will"pursue all remedies against Boeing for the damages incurred." It called Boeing's decision a wrongful termination. In its press release, The Brazilian company made reference to the Boeing 737 Max's two fatal crashes that have cost the aircraft maker at least $18.7 billion. Embraer said the company was manufacturing"false claims" to avoid paying the $4.
"It is deeply disappointing," Marc Allen, Boeing's president of Embraer partnership and group operations, said in a press release. He said that over the past several months, Boeing had"productive but ultimately unsuccessful negotiations" with Embraer that couldn't be resolved by the April 24 deadline.Read MoreUnder the terms of the deal, Boeing would own 80% of Embraer's commercial aircraft operations, while Embraer retained 20% ownership.
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Boeing terminates joint venture agreement with Brazil's Embraer
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