Bolsonaro administration decided on Thursday, Jan. 10th not to use its veto power in the agreement between Embraer and the US company Boeing. Although the Brazilian aircraft manufacturer was privatized in 1994, the government still had the so-called “Golden Share”, which allowed it to exercise veto power over the transfer of control of the company.
According to information from the Special Secretariat for Social Communication of the Presidency of the Republic, President Jair Bolsonaro met with Defense Ministers Fernando Azevedo e Silva of the Institutional Security Office, Augusto Heleno, of Foreign Affairs, Ernesto Araújo, of Science and Technology , Innovations and Communications, Marcos Pontes, besides representatives of the Navy, Army and Aeronautics.
According to the secretary, Bolsonaro was informed that the terms of the agreement were evaluated and that the content “preserves the sovereignty and the national interests”.
The agreement was announced in July last year and confirmed in December, and consists of forming a joint venture between the two companies, with 80% of Boeing and 20 percent of Embraer. The new company will take over Embraer’s commercial aviation industry. Boeing will pay $ 4.2 billion to take control of the business. The amount has been increased by 10 percent since the original announcement.
Another joint venture will be created for commercialization of the KC-390 military freighter, developed by Embraer, with a 51 percent interest in the company and 49 percent in Boeing.