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The
deal, marking the biggest shift in commercial aerospace in
decades, would reshape a global passenger jet duopoly and
reinforce Western planemakers against newcomers from China,
Russia and Japan.
It 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 and backed by European rival Airbus SE.
The deal values the Embraer unit at $4.75 billion.
The European Commission, which has set an Oct. 4 deadline for
its preliminary review of the deal, did not respond to a request
for immediate comment.
The EU competition enforcer will launch a full-scale
investigation following the end of its review, which could take
up to five months and raises pressure on Boeing to offer
concessions to address competition concerns.
The Commission recently quizzed suppliers and rivals on the
deal, indicating concerns about the concentration in the market.
They were asked about the impact of the reduced number of
players, from seven to six and from three to two in various
segments, a person with direct knowledge of the deal said.
No immediate comment was available from Boeing or Embraer.
Aviation analysts say there is limited overlap in the number of
seats between Boeing’s 737 family and Embraer‘s smaller E2 jets.
There is slightly more overlap between Airbus’s portfolio and
Bombardier’s CSeries program which the European planemaker
bought last year, they add.
(Reporting by Foo Yun Chee; editing by Tim Hepher)
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