Brazil's top planemaker Embraer and Italy's AgustaWestland have dropped joint-venture talks to produce the Anglo-Italian company's helicopters in the South American country.
A brief Embraer statement on Wednesday said the two companies jointly decided "to terminate negotiations without reaching an agreement for the establishment of a joint venture in Brazil."
It gave no explanation for why the talks collapsed.
Last January, Embraer said it signed a memorandum of understanding with AgustaWestland, a unit of Italy's Finmeccanica, to create a joint venture "which could lead to the production of AgustaWestland helicopters in Brazil to be marketed for both commercial and military use in Brazil and Latin America."
The companies then said preliminary studies had shown strong market potential for helicopters to serve Brazil's growing offshore oil and gas sector, as well as for executive transport and military craft.
Embraer is the world's third largest commercial aircraft maker while AgustaWestland is a leader in a number of helicopter markets.