22nd Nov 2019 | Elizabeth Sasu
A Chinese antitrust regulator has approved the joint venture between Boeing and Embraer.
The deal, which would see Boeing buy a controlling stake in the commercial jet division of Embraer, has been “approved unconditionally,” according to a statement on the regulator’s website.
Approval from the Chinese authority marks the removal of one significant hurdle, however, the deal still needs to gain European Union approval.
In October, The European Commission (EC) opened an in-depth investigation to assess the proposed joint venture by Boeing and Embraer.
Under the EU merger regulation, the commission is concerned that the transaction may reduce competition as regards commercial aircraft.
Regarding its reasoning, the commission has said that the removal of Embraer as the third largest global competitor in the commercial aircraft market could lead to “higher prices and less choice” for customers.
Earlier this month, regulators stopped its antitrust probe saying both companies need to provide additional documents.
Regulators claimed that insufficient documentation had been provided and will not be restarted until such time as it has been provided with all the information it has requested.
A spokeswoman for the regulator said: “Parties must supply the necessary information for the investigation in a timely fashion.
“Failure to do so will lead the commission to stop the clock.”
The companies originally said they expected to close the deal this year.
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