Boeing (BA) appeared closer to taking control of Embraer’s (ERJ) commercial jet business, after Brazil’s defense minister signaled that worries about the military segment have been resolved.
The Brazilian government owns a «golden share» in Embraer, allowing it to veto any tie-ups. But Defense Minister Joaquim Silva e Luna was upbeat about a deal, telling Bloomberg that talks will likely be finished by the end of the year.
«All of us, Boeing and Embraer too, are optimistic,» he said. «There was concern about preserving investments in our defense base, so that strategic projects wouldn’t be interrupted. That has been overcome.»
Embraer’s military jet unit had been a major sticking point for Brazil’s government, and a full takeover of the total company was reportedly off the table.
Instead, talks reportedly involved creating a new joint venture for Embraer’s commercial jet business that Boeing would control with a majority stake…
