Brazil Regulator to Approve Boeing-Embraer Deal in January

(Bloomberg) -- Brazil’s antitrust regulator is set to approve the deal between Boeing Co. and Embraer SA without major restrictions in January, a person familiar with the discussions said.

The deal will be fast tracked by the regulator, known as Cade, as there are no relevant competition concerns, said the person who requested anonymity to speak freely. The companies’ businesses complement each other, the person added.

No third parties or competitors have raised any concern or asked to be part of the discussions so far, said the person, adding that regulator board members are not expected to ask for more time to evaluate the deal.

Embraer shares rose to an intraday high of 19.66 reais after the news.

Boeing proposed buying a majority stake in the commercial aircraft division of its Brazilian counterpart a year ago, seeking to expand into the 100-seat planes market, a few months after Airbus SE took control of Bombardier Inc.’s operations in that segment.

The Boeing-Embraer deal has already been approved by U.S. and Chinese regulators. The biggest hurdle to the joint venture is the European Union, whose antitrust officials halted the analysis of the deal on Nov. 11, saying they haven’t received enough information from the jet makers.

Embraer said last month that its deal with Boeing probably won’t close before the end of March, citing the delay in the EU.

©2019 Bloomberg L.P.

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