Home Business Embraer Sale Will Be Discussed by the Bolsonaro Transition Team

Embraer Sale Will Be Discussed by the Bolsonaro Transition Team

Future Minister of Defense, Gen. Augusto Heleno wants to know details of the operation




Members of Michel Temer’s ministry and the future composition of President-elect Jair Bolsonaro have given indications that the Boeing-Embraer joint venture will be a matter addressed by both the departing administration and what enters next year. The sale of 80% of the Brazilian manufacturer’s commercial aviation will be discussed during the transition period between the mandates. The future Defense Minister, Army Reserve General Augusto Heleno, showed an interest in knowing the details of the operation. Throughout his campaign, Jair Bolsonaro was in favor of the partnership of companies.

Last Friday Oct. 26th, General Joaquim Silva e Luna, the current Defense Minister, had told Reuters that the operation would be presented to Bolsonaro’s team to try to formalize the agreement as soon as possible. On Monday Heleno said that “it has to see the terms of this agreement, the agreement has to be favorable, it has to be something that is advantageous for the country.” According to the general, the current government has legitimacy enough to coordinate the negotiations. “The Temer administration ends on December 31st,” Heleno said, adding that everything will depend on the understanding of those involved in the process.

In July, Embraer and Boeing signed a memorandum of understanding to form a joint venture in the area of ​​commercial aviation. In the new company, the American company will have 80% participation, a portion valued at US $ 3.8 billion. The expectation of sources heard by Valor Econômico is that the negotiations end as early as November. The Union, having a “golden share”, has 30 days to exercise the right of veto or endorse the transaction, according to the Embraer statute. The company must then call a shareholders’ meeting 30 days in advance – which should lead to the conclusion of the operation in early 2019.