Boeing scraps Embraer deal

Boeing Co on Saturday pulled out of a $4.2-billion deal to buy the commercial jets division of Brazil’s Embraer, unraveling years of work on a transformative move driven by expanding competition with Europe’s Airbus.

The deal’s collapse, first reported by Reuters, is expected to trigger a legal battle as hopes for an alliance spanning from regional to jumbo jets dissolve into behind-the-scenes bickering, though a separate military transporter marketing pact will remain intact.

“Over the past several months, we had productive but ultimately unsuccessful negotiations … We all aimed to resolve those by the initial termination date, but it didn’t happen,” Boeing senior vice-president Marc Allen, the president of the proposed Embraer partnership, said.