Boeing on Saturday pulled out of a USD 4.2 billion deal to buy Embraer’s commercial jets division, Reuters reports.
Boeing accused Embraer of failing to meet conditions for closing the transaction, without specifying the details.
The deadline for the closing of the deal was April 24, in line with the agreement reached in early 2019, but the antitrust procedures forced the companies to try to set a new deadline.
Two unnamed sources told Reuters that Embraer had refused to extend the deadline. The Brazilian company has declined to comment.
In July 2018, Boeing reached an agreement on the purchase of 80% of Embraer's commercial aircraft division, in order to directly compete with Airbus in the medium-sized aircraft (up to 150 seats) market.
At the time, Embraer aggressively defended the sales agreement, claiming it was crucial to the company's survival.
Embraer is the third biggest aircraft manufacturer in the world.