Boe­ing-Em­braer merger go­ing ahead af­ter Bol­sonaro ap­proval

Daily Sabah (Turkey) - - Business -

AVI­A­TION giants Boe­ing and Em­braer will push on with their pro­posed merger af­ter Brazil Pres­i­dent Jair Bol­sonaro con­firmed on Thurs­day he would not op­pose the move.

The two com­pa­nies had an­nounced in July that Amer­i­can Boe­ing would take con­trol of Brazil­ian Em­braer’s com­mer­cial air­plane man­u­fac­tur­ing busi­ness but the deal hit a snag last week when Bol­sonaro, who was sworn in as pres­i­dent on Jan­uary 1, ex­pressed con­cerns over the deal.

Em­braer’s shares took a nose dive af­ter Bol­sonaro’s state­ment but on Mon­day his gov­ern­ment said it was “not think­ing of in­ter­rupt­ing this ne­go­ti­a­tion.”

On Thurs­day, a state­ment pub­lished by the pres­i­dency said Bol­sonaro was sat­is­fied that “the fi­nal pro­posal pre­serves Brazil’s sovereignty and na­tional in­ter­ests” and hence he would not ex­er­cise his “veto” right to scup­per the merger.

Un­der the $5.2 bil­lion deal, Boe­ing will take an 80 per­cent stake in Em­braer’s busi­ness, with only the Brazil­ian com­pany’s mil­i­tary divi­sion ex­cluded from the tie-up.

While Em­braer, the third largest man­u­fac­turer in the world be­hind Boe­ing and Euro­peans Air­bus, was pri­va­tized in 1994, the Brazil­ian gov­ern­ment re­tained a veto power of its strate­gic de­ci­sions.

A joint state­ment from the two com­pa­nies said they “wel­comed ap­proval by the Gov­ern­ment of Brazil of the strate­gic part­ner­ship that will po­si­tion both com­pa­nies to ac­cel­er­ate growth in global aero­space mar­kets.”

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