Brazil: Embraer and Boeing will join forces on new JV

Boeing Co. has revealed it is in the middle of negotiations with its Brazilian counterpart, Embraer, to form a new Joint Venture, in which the US firm would control 51% of shares.

Boeing agreed to this ownership limit, requested by Brazilian authorities. Embraer has not commented on the operation. Boeing has long sought the approval of the Brazilian government to form a partnership with Embraer, focusing on its commercial aviation sector.

The proposal would make Boeing a new leader in the region for the production of smaller aircraft, increasing the pressure on the partnership formed by Boeing’s staunch European rival, Airbus SE and Canada’s Bombardier.

An initial Boeing offer to take over part of Embraer was rejected by the government, fearing the chance of losing control of its military aircraft unit to a foreign company. The government maintains a “golden participation” within the company, giving it power over this type of negotiations.

Full Content: Reuters

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