Boeing-Embraer transaction deal delayed over review by European regulators

U.S. top aircraft manufacturer Boeing Company (Boeing) said Thursday that its deal on creating a commercial aircraft joint venture with Brazil's leading planemaker Embraer S.A. (Embraer) will be delayed to next year due to scrutiny by European regulators.

Boeing said its partnership with Embraer to set up a new company, in which Boeing has 80 percent of stakes, has received approval from the United States, but the European Commission has demanded review of the deal.

"The European Commission recently indicated it will open a Phase II assessment in its review of the transaction ... Based on this development, however, the companies now expect the transaction to close in early 2020," Boeing said in a statement.

The two companies received approval from Embraer shareholders in February this year for Boeing's purchase of Embraer's commercial jet division for 4.75 billion U.S. dollars, and they had previously announced the transaction would close by the end of 2019.

Media reports said the European Commission's "Phase II" investigation of the Boeing-Embraer deal could last several months.