(Bloomberg) -- Shares of Embraer SA rallied for a second day after the aircraft maker and Boeing Co. reiterated their commitment to a joint venture to build smaller commercial jets.
Embraer continues to take all the “necessary actions” for the conclusion of its deal with Boeing, the Brazilian company said in a statement emailed to Bloomberg. The comment followed remarks from Boeing’s Chief Financial Officer Greg Smith on Tuesday.
Embraer’s American depositary receipts climbed as much as 31% in New York Wednesday, while the stock surged as much as 20% in Sao Paulo.
Boeing and Embraer missed the original deadline to have their deal completed by the end of last year after the European Union’s antitrust body stopped the clock on its analysis of the agreement. It has since stopped the clock two more times, with the best-case scenario for the approval now being the second half of the year.
The delay in the EU approval had a landslide effect on the accord, as Boeing, already dealing with the-ever growing crisis with the grounded Max, saw itself also in the middle of the debacle from the coronavirus outbreak.
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