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MPF asks Cade to review Boeing's purchase of Embraer

by Ace Damon
MPF asks Cade to review Boeing's purchase of Embraer

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Boeing's purchase of Embraer may undergo a review by Cade (Administrative Council for Economic Defense). This is because the Federal Public Ministry (MPF) asked for a new analysis of the agreement approved in January by Cade's General Superintendence.

Embraer KC-390

At the time, the department evaluated that the companies do not compete in the same market and, therefore, the agreement would not cause competitive problems. The analysis considered two transactions: the purchase of 80% of the capital of Embraer's commercial aviation business by Boeing and the creation of a joint venture between the two companies for the production of the military aircraft KC-390.

The Deputy Attorney General of the Republic, Samantha Dobrowolski, MPF representative at Cade, argued that the analysis focused on the possible risks for commercial aviation from 100 to 200 seats, with a specific cutout from 100 to 150 seats.

The MPF also recalled that the analysis covered aircraft beyond 150 or 200 seats. The agency, however, understands that there is a gap in the analysis of the segment with less than 100 seats, aimed at regional aviation:

As much as the aircraft identified as potential competitors, between Boeing and Embraer, are situated in the slice between 100 and 150 seats, the measure described is important for the completeness of the portfolio power analysis, since Embraer currently manufactures several types of aircraft used for regional aviation, and has a significant level of success in this market.

The MPF's request will be distributed to an adviser, who will present his opinion to Cade's Court. If the collegiate body approves this demand, the agreement will be reviewed and brought to trial. Embraer and Boeing can continue the operation, but it cannot be finalized until Cade's decision is taken.

With information: Jota, G1.

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