Report: Boeing Amenable to Keeping Brazil’s ‘Golden Share’ in Embraer to Advance Tie-Up Talks

Boeing (NYSE: BA) intends to maintain the Brazilian government’s “golden share” in aerospace conglomerate Embraer in a push to address the Brazilian military’s concerns over a potential combination between the two aerospace companies, Reuters reported Friday.

The “golden share” allows the South American country to exercise veto power over changes in controlling interest and other strategic decisions at Embraer.

A government official told Reuters Boeing’s proposal was declined due to its plan to take control of the Brazil-based aerospace company.

An individual familiar with the negotiations said the possible combination could be worth approximately $5 billion to $6 billion.

Brazil’s air force “considers Embraer a strategic company that is fundamental for our national sovereignty, so a possible partnership with Boeing should also be studied from this point of view,” the service said in an emailed statement.

The companies first announced in December that they were in discussions about a possible tie-up.

Check Also


House Panel OKs Potential $740.5B Defense Spending Measure for FY 2021

The House Armed Services Committee unanimously passed on Wednesday a $740.5B defense policy bill for fiscal year 2021, The Hill reported Wednesday.


L3Harris Subsidiary to Build Navy Submarine Sensor Under Potential $136M Contract

A subsidiary of L3Harris Technologies (NYSE: LHX) has been awarded a potential five-year, $135.8M contract to develop and test an optronic sensor technology for U.S. Navy submarines.