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Mergers: Boeing to buy Embraer
  • Vitaliy_KiselevVitaliy_Kiselev

    Boeing and Embraer have been discussing a deal that would involve a relatively large premium to the Brazilian company's market capitalization of $3.71 billion, the WSJ reported.

    The report comes about two months after Boeing rival Airbus SE (AIR.PA) agreed to buy a majority stake in Bombardier Inc’s (BBDb.TO) CSeries jetliner program. Reuters reported then that the CSeries deal could push Boeing and Embraer closer together..

  • 4 Replies sorted by
  • ghkqnghkqn

    It is inevitable when Boeing pushed Bombardier into the arms of Airbus. Besides the 130-150 pax single aisle narrowbody segment is going to get crowded with the Comac C-919 and Irkut MC-21. In that segment the B737-700 max and the A319 are both getting long in the teeth. In the long run ~2030, the future much larger widebody Comac C-929 (which is a collaborated effort between China and Russia although engine selection is not yet known) will be impacting both the B787 and A330 price and bottom line.

  • pureaxispureaxis

    @ghkqn I doubt the C919 would have any global impact apart from the Chinese domestic market, it's long development basically meant its already a generation behind compared to the 737max and 320neo, which makes it less comparative as a whole. The C929 probably won't be ready in many years.

  • ghkqnghkqn

    Agree but China is a top contributor to the sales of both Boeing and Airbus. If the C919 takes a sizable chunk out of that market, it is going to hurt, not counting the significant price pressure (and reduced margins) that will come when a Chinese competitor shows up. It will not take long before low cost operators and developing countries will be signing on given the reduced capex.

  • Vitaliy_KiselevVitaliy_Kiselev

    @ghkqn

    It is all universal imperialism rule - only one will survive. But as capitalist become slightly smarter they artificially try to keep two.

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