Report: Boeing, Embraer Discussions Raise Questions on Brazilian Firm’s Ownership

Talks of a potential combination between Chicago-based Boeing (NYSE: BA) and Embraer have not addressed questions such as the possibility of a joint venture and control over the Brazil-based aircraft manufacturer, Reuters reported Tuesday.

Sources told Reuters that a potential JV might not be an effective measure to meet Boeing’s interest in the Brazilian planemaker’s portfolio of defense programs and regional passenger jets as well as merge engineering resources.

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

The Brazilian government has a “golden share” in Embraer that allows the country to exercise veto power over any takeover deals and other strategic decisions at the company.

Sources noted that Boeing has met sovereignty demands in foreign markets as seen in the establishment of defense businesses in the U.K. and Australia and might use them as reference as it works to advance tie-up talks with Embraer.

You may also be interested in...

F-35 Lightning II

State Dept OKs Potential $10B Sale of Lockheed-Made F-35s to UAE

The State Department informed Congress it approved the United Arab Emirates’ request to buy 50 Lockheed Martin-built (NYSE: LMT) F-35 fighter jets under a potential $10B deal, Reuters reported Friday. The potential foreign military sales deal will move to an informal review by the House Foreign Affairs and Senate Foreign Relations committees.

strategic partnership

DC Capital Aims to Help HTSI Grow Gov’t Footprint via Strategic Partnership

Private equity firm DC Capital Partners has entered into a strategic partnership agreement with Huntsville, Alabama-based system engineering company Hill Technical Solutions Inc. aimed at helping expand the latter's customer base and support work in the government sector.