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Irony, FCPA enforcement actions, and M&A

Tom Fox | July 9, 2018

Boeing recently announced it was acquiring the commercial jet business of the Brazilian company Embraer. The acquisition will result in a new business venture that is owned 80 percent by Boeing and 20 percent by Embraer. The announcement came on the heels of an earlier announcement that the U.S. refining giant LyondellBassell is looking to acquire another Brazilian entity, Braskem.

If Embraer and Braskem sound familiar to the readers of this blog it is because they both paid massive fines for their respective Foreign Corrupt Practices Act violations and are now both under monitorships from U.S. regulators and Brazilian authorities.

Is Boeing buying itself an FCPA violation in the purchase of the Embraer assets. The short answer is no, if the purchaser follows some very basic guidelines outlined under Hallmark 10 in the 2012 FCPA Guidance. First and foremost both companies should engage in as much pre-acquisition due diligence from the compliance perspective as...

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