US and Brazilian defence and aerospace companies Boeing and Embraer announced on 21 December that they are in engaged talks examining potential merger proposals.
Both companies emphasised that the talks are tentative and are not necessarily expected to yield a transaction. In addition, the Brazilian government retains a controlling ‘golden share’ of Embraer, entitling it, as well as the company’s other major shareholders, to veto any transfer of ownership.
Following the breaking of the news on Thursday Brazilian newspaper Folha de S. Paulo reported that the country’s president, Michel Temer, had expressed support for a partnership between the companies but rejected the prospect of the sale of a controlling stake in Embraer.
Want to read more? For analysis on this article and access to all our insight content, please enquire about our subscription options at ihs.com/contact