The share price of Brazilian airplane manufacturer Embraer soared Friday, January 11 as markets reacted favorably to the country’s President Jair Bolsonaro approving a merger with Boeing.
Bolsonaro announced he wouldn’t be using his veto powers to block the merger between two of the world’s three biggest aviation companies.
Embraer’s shares had taken a nosedive last week after Bolsonaro had expressed concerns over the deal.
But now the US$5.2 billion deal, which will see Boeing take control of Embraer’s commercial airplane manufacturing business – 80% of its operation – will go ahead.
Embraer will only retain control of its military division.
On Thursday, Bolsonaro had said he was satisfied that “the final proposal preserves (Brazil’s) sovereignty and national interests.”
Embraer was founded as a state group in 1969 before being privatized in 1994, although the Brazilian government retained a “golden share” giving it the right to veto strategic decisions for the company.
Full Content: France 24