Home Business Brazil president weighing Boeing-Embraer joint venture: spokesman

Brazil president weighing Boeing-Embraer joint venture: spokesman

842
0
SHARE

 

After the departure of Raul Jungmann from the Ministry of Defense, who opposed the merger of Embraer with Boeing, the official position of Brazil seems to have changed.

Michel Temer is weighing whether to support a proposal for a joint commercial aviation company between Boeing Co (BA.N) and Brazilian aircraft maker Embraer (EMBR3.SA), a presidential spokesman said on Tuesday.

Because Brazil’s government has opposed an outright takeover of Embraer, which the government regards as a strategic company, the proposal involves creating a third corporation. The new corporation would include the passenger plane unit of Embraer, the world’s top maker of regional jets, while excluding Embraer’s defense operations.

The Brazilian government, which holds a “golden share” in Embraer that gives it veto power over strategic decisions, must ultimately approve any deal.

“Nothing has been decided on the partnership between the two companies,” Temer’s top spokesman, Marcio de Freitas, told Reuters.

“The Defense Ministry received the proposal and sent it to the president, but it still has to be studied and there are still some doubts about the matter,” he added, without providing further details.