SAO PAULO--Brazilian plane maker Embraer SA (EMBR3.BR, ERJ) said
Friday that it ended talks with AgustaWestland, a subsidiary of
Italy's Finmeccanica (FNC.MI), without reaching an agreement to
form a joint venture.
Embraer and AgustaWestland said in January the two companies
were considering forming the joint venture to build military and
commercial helicopters in Brazil.
In a Friday regulatory filing, Embraer didn't say why the
companies failed to reach an agreement.
AgustaWestland Chief Executive Bruno Spagnolini had said in
January that "Brazil is an important market...and we believe that
having a manufacturing presence in the country will help our
business grow even more in one of the fastest-growing markets in
the world."
For Embraer, the venture would have allowed the company to
provide aircraft for the oil and gas industry, as well as executive
and military transport, according to the January statement.
Embraer has been seeking more military contracts in order to
secure at least one-fifth of total revenue from its defense
division. The company has also sought to expand into other markets,
saying that in the future it may expand into building boats for
Brazil's military.
Write to Paulo Winterstein at paulo.winterstein@dowjones.com