EU antitrust regulators opened on Friday, October 4, a full-scale investigation into Boeing’s bid for a controlling stake in Embraer’s commercial aircraft arm, claiming the deal may reduce competition and push up prices.
According to Reuters, the European Commission stated the deal would remove world No. 3 player Embraer from the commercial aircraft industry while potential rivals from China, Japan, and Russia would be unable to fill the gap in the next decade because of the high barriers to entry.
The EU competition enforcer stated both companies engage in head-to-head competition in terms of price and other parameters worldwide and in Europe. The deal would also remove Embraer from the overall single aisle plane market.
The Commission set a February 20 deadline for its decision. Reuters was the first to report on an imminent EU investigation, which was subsequently confirmed by Embraer.
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