ANALYSIS -Boeing-Embraer deal on knife-edge as markets tumble

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ANALYSIS -Boeing-Embraer deal on knife-edge as markets tumble

By Tim Hepher, Marcelo Rochabrun and Eric M. Johnson


By Tim Hepher, Marcelo Rochabrun and Eric M. Johnson

PARIS/SAO PAULO/SEATTLE, March 19 (Reuters)Brazil has upheld proposals by Boeing Co BA.N to purchase the jetmaking arm of Embraer EMBR3.SA, however plunging markets have raised pressing questions over the destiny of the $4.2 billion deal as aviation reels from the coronavirus disaster.

Brazil’s anti-trust watchdog dismissed prosecutors’ objections to the politically delicate deal on Wednesday.

A droop in Embraer shares and money considerations at Boeing pushed by the influence of the coronavirus on air journey dealt a blow to the deal’s fragile economics, nonetheless, compounding uncertainty attributable to delays in profitable European Union regulatory approval.

Shares on the planet’s third-largest planemaker fell 14% on Wednesday, giving it a market worth of about $1.three billion after falling by two thirds for the reason that deal was first aired in 2018, based on Refinitiv Eikon knowledge.

At such costs, Boeing would…



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