Brazilian government stops Boeing to acquire Embraer, but ready to bless any partnership or joint venture between the both aircraft manufacturer, revealed the country’s defense minister Raul Jungmann.
“This partnership between Boeing and Embraer is very much appreciated by the Brazilian government and the defence ministry, we hope that it will succeed, that it will take place”, said Raul Jungmann, stressing the Brazilian government holds a prized golden share and could veto any takeover bid. “The only limitation we see is the transfer of shareholding control,” he added. “Other than that, partnership, joint venture, whatever it is, is very welcome”, added he.
His comments come after the companies confirmed in late December that they were engaged in discussions regarding a potential combination of their businesses.
However, people close to the discussions countered that Boeing was looking for majority control. It categorically would not accept a joint venture. Further details for negotiations are still not revealed, but Brazilian government do not give any chances for completion of acquisition, holding the golden share.
The big interest of Boeing to the Brazilian company is due to growing market demand for regional airliners. Boeing left the segment far away and has no effective aircraft in it. On other hand, developing of such aircraft costs the same as big airliners, making it expensive for the US corporation.
Embraer is the third largest civil aircraft manufacturer in the world, following Boeing and Airbus. Possible merger will create big player on the market, competing in all segments of aviation.
