AgustaWestland and Embraer have terminated joint-venture discussions for helicopter production in Brazil. The companies issued a joint statement yesterday announcing the decision, but declined to provide reasons why talks collapsed.

“Following the press release jointly issued on January 21, 2013, related to the memorandum of understanding signed by Embraer and AgustaWestland, the two companies announce today their joint decision to terminate negotiations without reaching an agreement for the establishment of a joint venture in Brazil,” the companies said in the joint statement. Spokesmen for both companies did not return AIN’s inquiries seeking further information.

AgustaWestland has had a change of executive leadership since the initial announcement was made in January and its parent company, Finmeccanica, has been under strain and is due to release delayed 2012 financial results tomorrow. The helicopter manufacturer apparently was hoping to use the joint venture as entry into Brazil’s lucrative and state-controlled oil and gas market for its AW139 and AW189 medium twins and to challenge the historic market dominance of Eurocopter’s Brazilian subsidiary, Helibras, which has delivered more than 500 helicopters in Brazil since 1978.