Brazil will give “blessings” for any partnership or Joint-Venture between Boeing and Embraer, but will not allow Boeing to take the ownership of the the company, said Brazil’s defence minister.
Last month Embraer confirmed that it was in discussions with Boeing over a potential deal, in which “the Boeing would keep the Embraer brand and factories in Brazil. In return, Boeing would get Embraer engineers’ expertise to help jump-start a new midmarket plane, which many analysts are dubbing the “797.” but the final agreement has to be approved by the Government of Brazil as it holds the controlling ‘golden share’ that could veto any takeover bid.
In an interview with the Financial Times, Brazil’s defence minister Raul Jungmann said that “This partnership between Boeing and Embraer is very much appreciated by the Brazilian government, we hope that it will succeed” but “The only limitation we see is the transfer of shareholding control,”
However sources close to Boeing said, the Boeing will not be interested in Joint Venture and is only seeking for majority control of the company which is unlikely to happen if Government of Brazil veto it.
Embraer is the third largest civil aircraft manufacture, after Boeing and Airbus. The Boeing’s move came after Airbus struck a deal with Canadian Bombardier C-Series last year to control the mid-size aircraft market.
If the deal goes through it will also allow western based Boeing and Airbus to control the market as China’s Comac is slowly penetrating into the market.