Brazil-based Embraer said Thursday any deal that would emerge from the discussions would need to be approved by Embraer shareholders, both firms’ boards of directors, the Brazilian government and other regulatory authorities.
Embraer added there is no assurance the merger talks would result in any transaction.
Reuters reported the government of Brazil has a “golden share” in Embraer that allows the country to exercise veto power over any takeover deals.
“We are following closely but there is nothing concrete yet and anything we say now could be imprudent and harm the talks,” said Adriana Fortes, a spokeswoman for Brazil’s defense ministry.
“Not even the companies have agreed on anything concrete,” she added.
The two aerospace companies have teamed up on several projects such as alternative fuels and runway safety, the report noted.
Boeing and Embraer signed a collaborative agreement in July 2016 to jointly market the latter’s KC-390 military transport aircraft and related sustainment services.