Embraer SA jumped the most in two months as its proposed commercial-jet venture with Boeing Co. cleared a major hurdle.
Brazilian President Michel Temer has endorsed the partnership in principle, said a person familiar with the discussions, a crucial step since the Brazilian government has veto power over any Embraer tie-up. The talks will potentially conclude within weeks, said a second person, who asked not be named because the discussions are private.
Boeing and Embraer are getting closer to a pact that would forge the second global alliance between major airplane manufacturers. Airbus SE is set to take control July 1 of Bombardier Inc."™s C Series single-aisle jetliner, a direct rival of Embraer"™s next generation of planes. The twin deals are set to turn the market for a new generation of 100- to 150-seat planes into the next battleground in the broader struggle between Boeing and Airbus.
Embraer"™s American depositary receipts jumped 5.9 percent to $26.37 at the close in New York, the most in two months. Boeing was little changed at $370.62.
Temer gave his blessing after Brazil"™s Air Force, defense minister and secretary of strategic affairs approved the deal, said the person familiar with the president"™s deliberations. Negotiators for Boeing and Embraer have reached agreement on most issues and are now discussing some remaining details that amount to about 10 percent of the terms, the person said…