Brazil's Embraer Ends AgustaWestland Talks Without JV Agreement

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 [e-mail]