Embraer SA (NYSE:ERJ) And Boeing Co (NYSE:BA) Confirm Talks On Prospective Combination


Embraer SA (NYSE:ERJ) and Boeing Co (NYSE:BA) confirmed the two firms are involved in discussions pertaining a prospective merger, the basis of which is under discussion. As per the update, there is no assurance a deal will be finalized from these talks. Both the firm do not plan to make any additional comments pertaining these talks. Any deal would be subject to the nod of the Brazilian government and watchdogs, the two firms’ boards and Embraer’s shareholders. The firm will keep the market and shareholders apprised of the developments of the respective matter.

The buzz

Earlier in the month of October, Embraer reported April 2018 as the delivery date of its introductory E190-E2 to Widerøe. The update was given at a press briefing in Athens, during the AGM of the European Regional Airline Association. Widerøe, the leading regional airline in Scandinavia, will start revenue service shortly afterwards.

John Slattery, the CEO and President of Embraer Commercial Aviation, expressed that since the program was introduced, 1H2018 has been their target, and now they are making progress on this commitment. This was possible following the excellence of their engineering process and their exclusive experience in certifying twelve new aircraft in the previous 17 years. From the start the E2 plan has been, and continues to be on budget, on time and better than the preliminary specification. They will deliver to the market a robust and mature aircraft.

Widerøe finalized a deal with Embraer for up to fifteen E2 jets comprising of three company orders for the “E190-E2”, the first launch of the second-gen of the E-Jets family, and buy rights for 12 other E2s. This order has a prospective list price value of up to $873 million, when all orders are exercised. Also, the airline is forming the E190-E2s in a single-class layout having 114 seats.

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